April 24, 2008 / 11:09 AM / 10 years ago

Celestica swings to profit

TORONTO (Reuters) - Contract electronics maker Celestica Inc (CLS.TO)(CLS.N) said on Thursday it returned to a first-quarter profit, despite a slight dip in revenue, partly due to a smaller restructuring charge.

The company, which makes consumer electronics such as Microsoft Corp’s (MSFT.O) Xbox 360 video-game console, said it earned $29.8 million, or 13 cents a share, in the three months that ended March 31, compared with a loss of $34.3 million, or 15 cents a share, in the same period a year earlier.

It recorded a $3.3 million charge in the period related to ongoing job cuts and the closing of facilities, compared with an $8.0 million charge in the comparable period in 2007.

Celestica said its revenue slipped to $1.836 billion from $1.842 billion a year earlier, meeting its earlier target of between $1.7 billion and $1.9 billion.

Analysts were expecting the company to earn 8 cents a share before one-time items on revenue of $1.83 billion, according to Reuters Estimates.

Adjusted profit, which includes charges and other items, was 15 cents a share, compared with a loss of 4 cents a year earlier, beating the forecast the company provided in January.

For the second quarter, Celestica expects adjusted earnings in the range of 13 to 19 cents, and revenue in the range of $1.8 billion to $2.0 billion.

The Toronto-based company had so far dismissed concerns that the economic turmoil in the United States would hurt its fortunes as consumers curb spending on items like flat-panel televisions and other electronics.

Chief Executive Craig Muhlhauser said in a statement on Thursday Celestica “is well positioned for continued progress in 2008 and beyond.”

The firm’s customers also include computer giants IBM (IBM.N) and Hewlett-Packard Co (HPQ.N).

Reporting by Jonathan Spicer; Editing by Scott Anderson

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