Celestica

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Celestica

Type	Public
Founded	1994
Headquarters	Toronto, Ontario
Key people	Craig H. Muhlhauser (CEO)
Industry	Electronics
Products	Computing, communications, aerospace and defence, consumer, industrial, automotive electronics
Revenue	$ 8.5 billion USD (2005)^[1]
Net income	(USD$42.8) million
Employees	almost 49,000^[2]
Parent	Onex Corporation
Website	www.celestica.com

Celestica Inc. (TSX: CLS.SV NYSE: CLS) is a multinational electronics manufacturing services (EMS) company headquartered in Toronto, Canada. Celestica operates a global manufacturing network with operations in Asia, Europe and the Americas, providing a broad range of integrated services and solutions to leading OEMs (original equipment manufacturers).

1 History
2 Operations
3 Restructuring
4 Celestica Site located in Reynosa, Mexico
5 Controversy
6 External links
7 References

[edit] History

Celestica was incorporated as a wholly owned subsidiary of IBM in January 1994. Onex Corporation acquired Celestica in October 1996 and controls approximately 80% of the company's voting shares.

[edit] Operations

Celestica’s global manufacturing network is comprised of more than 40 locations in the Americas, Europe and Asia. The company's global services include design and engineering, manufacturing and systems assembly, fulfillment and after-market services.

[edit] Restructuring

In recent years, Celestica has gone through five rounds of "restructuring" and has eliminated over 27,000 employees.^[3] In one of the most recent reorganizations in 2005, Celestica eliminated most internal IT operations and outsourced them to IBM India. Other changes include reductions in retirement benefits, and the elimination of some people from eligibility for its bonus payments. (Currently one must be employed when the bonus is paid out to receive it. Before this one only had to be employed up to the end of the fiscal year.)

[edit] Celestica Site located in Reynosa, Mexico

One of the leading facilities which manage After Market Services (CAMS) is the one located in Reynosa, Mexico, a city located in the northern state of Tamaulipas. This site offers after market services such as repair, refurbish and retesting of several products for several customers. The list of customers this site has Business Units (BU) include:

Motorola - this B.U. is widely dedicated to repairing and refurbishing several models, such as V551, V557, V3, V3c, V325, MotoQ
Palm - it repairs and refurbishes smartphones such as Treo 600, Treo 650, Treo 700, and some other handheld models.
RIM - BlackBerry smartphones such as Charm C and Charm D
Sun Microsystems - microprocesor modules for wide range of Network Servers
Lucent Technologies - radio base electronic cards for mobile technologies
HP - displays and monitors
Avaya - wireless phones, hubs and phone handsets

Competition for this site include Solectron, Foxconn, Jabil Global Services, Teleplan, which all of the last 3 also have facilities in Reynosa.

[edit] Controversy

On Friday, January 12, a shareholder class action suit was filed in New York against Celestica and members of the company’s executive team.

The complaint alleges that the company made materially false and misleading statements about the business and failed to disclose adverse facts, namely:

(i) that the Company was experiencing declining demand in its Mexican operations and that the division was carrying significant amounts of unneeded inventory which would have to be written off;

(ii) that the Company was experiencing declining demand in its Information Technology (IT) and Communications market segments as its larger customers scaled back purchases; and that the stock dropped when this information later became public.

This class action suit is still being solved as of January 25, 2007.