Celestica Q3 profits drop 40%
Muhlhauser, the Toronto-based electronics manufacturer’s CEO, plans retirement.
TORONTO — Celestica Inc. says its president and chief executive officer, Craig Muhlhauser, is planning his retirement as the company’s third-quarter profits dropped 40%.
The Toronto-based electronics manufacturer says it will start the hunt immediately for a new leader among both internal and external candidates, while Muhlhauser plans to stay in the role until late 2015.
The announcement came as Celestica, which reports in US dollars, said net earnings fell to US$34.4 million in the quarter, a steep decline from US$57.4 million in the comparable period last year.
The company, which provides global electronic manufacturing services to companies in several industry sectors, said revenues weakened nearly five per cent to $1.42 billion from $1.49 billion.
The weaker results came from “demand softness” in its communications division, Celestica said, adding that it expects the business environment to remain challenging in the near term.
“While we expect the overall business environment to remain challenging in the near term, we remain committed to investing for the future growth and profitability of Celestica,” said Muhlhauser in a release.
The company estimates its fourth-quarter revenue will be in a range of $1.38 billion to $1.48 billion.
Celestica has operations in North America, Europe and Asia, specializing in the design, manufacture and assembly of electronics.
© 2014 The Canadian Press