TORONTO (Reuters) - Contract electronics manufacturer Celestica Inc (CLS.TO) (CLS.N) reported a smaller fourth-quarter loss on Thursday as revenue came in higher than the company and analysts had expected and it said it will expand its cost cutting program for the balance of the year.
Celestica, which makes consumer electronics such as Microsoft Corp’s (MSFT.O) Xbox 360 video game console, said it lost $11.7 million, or 5 cents a share, in the three months ended December 31. That was better than the loss of $60.8 million, or 27 cents a share, in the same period a year earlier.
Adjusted profit was 16 cents per share, up from 3 cents a share a year earlier, and at the top end of the expected range the company provided in October.
Revenue dipped to $2.21 billion from $2.26 billion, but this was higher than the company’s forecast and analysts’ predictions.
Celestica, whose customers also include computer giants IBM (IBM.N) and Hewlett-Packard Co (HPQ.N), took $24 million in restructuring charges in the quarter, down from $59 million a year earlier. Its net loss also included a $15 million writedown of long-lived assets, it said.
The Toronto-based company also announced it would expand its restructuring program by between $50 million and $75 million in 2008 to cut away more of its fixed costs and operating expenses.
For the first quarter ending March 31, it expects revenue between $1.7 billion and $1.9 billion and adjusted earnings of between 6 and 11 cents a share.
It said the forecast reflects seasonal effects in its communications, information technology and consumer business.
Reporting by Wojtek Dabrowski; editing by Rob Wilson