Celestica to stop making BlackBerrys for RIM
Celestica Inc, a manufacturer of end-to-end product lifecycle solutions, announced that over the course of the next three to six months, it will wind down its manufacturing services for Research in Motion (RIM).
Celestica has been a manufacturing supplier for RIM and will work closely with RIM throughout the transition. As discussed on the company’s first quarter results conference call on April 24, Celestica has been working with RIM as it assesses its supply chain strategy.
“I’ll underscore that we’re having ongoing discussions with RIM and what is going to happen is not clear,” said Craig Muhlhauser, president and chief executive of Celestica. “Having said that, if we need to restructure and essentially get rid of all the capacity that we had, which at this point is not our plan… we would see a charge in the neighbourhood of something around $35-million would probably be the maximum.”
More details about this announcement will be provided as part of the company’s second-quarter results press release and conference call, which are scheduled for Friday, July 27.
In addition, Celestica is reaffirming its second quarter financial guidance that was provided on April 24. The company anticipates revenue to be in the range of $1.65 billion to $1.75 billion, and adjusted net earnings per share to be in the range of $0.20 to $0.26.