• Print
  • Send to a friend
  • Comment (0)
  •  

Celestica to halt RIM manufacturing services

(Stock image)

(Stock image)

Published on June 18, 2012
Published on June 18, 2012
The Canadian Press ~ OBJ  RSS Feed

Celestica Inc. (TSX:CLS) announced Monday that it plans to wind down its manufacturing services for Research in Motion (TSX:RIM) over the next three to six months.

Topics :
Celestica , RIM , Toronto Stock Exchange , Waterloo

Celestica says it has been working closely with RIM as the troubled BlackBerry maker assesses its supply chain strategy.

And it says it plans to continue to do so during the transition period.

Celestica did not provide further details, saying those would come when it releases second-quarter results on Friday.

However, the company said that prior to any recoveries, its restructuring charges would not exceed US$35 million.

A spokesman for Waterloo, Ont.,-based Research in Motion was not available to discuss the development.

"We do not normally comment on specific supplier relationships," the company said in an e-mailed statement.

"As we outlined in our Q4 earnings call, we are making changes to our supply chain as part of wider efforts to improve the efficiency and cost effectiveness of RIM's operations to help meet our strategic objectives and to deliver long-term value to our stakeholders," it said.

Celestica, meanwhile, reaffirmed its second-quarter financial guidance provided April 24. The company anticipates revenue to be in the range of US$1.65 billion to US$1.75 billion, with adjusted net earnings of 20 to 26 cents per share.

Toronto-based Celestica supplies original equipment manufacturers in the communications, computer, telecom aerospace, defence and other markets.

On Friday, Celestica shares closed up eight cents at $7.61 on the Toronto Stock Exchange.

In premarket trading on the Nasdaq, RIM shares were down 19 cents, or 1.7 per cent, at $10.70.

Submit a comment

Submit a comment (we keep all emails private)
Agreement

We ask that users remain courteous. You may not post insulting, discriminatory or inappropriate content, which may be removed at our discretion. We are not responsible for user content and opinions. Use of this site as well as content submission & ownership are governed by our Conditions of Use and Privacy Policy.

Member organizations should be non-profit in nature, and promote legal activities. Any organization found promoting illegal activities or commercial products or services will be deleted from the site.

I agree with these conditions.

Advertising

Expert bloggers

BrazeauSellerLLP
Blogger
David Reid
Held up by the Holdover: Buyer...
Hire Immigrants Ottawa
Blogger
Kerri Pereira
Performance Management in a Diverse...

More bloggers here

CASE STUDY VIDEOS

An investment in yourself
LC Fitness Studio

No surprises, no upselling
RE/MAX Citywide Realty

Are you ready for the unexpected?
TK Financial Group

Newsletter

Please enter your email to receive our free newsletter

Subscribe to news alerts

Advertising