Celestica Inc Q1 2009 Earnings Call Transcript

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2009-04-23 17:30:33.0

Tags: Celestica Inc., Call Transcript, Earnings, RBC Capital Markets, Sales Strategy, Balance Sheets, Investment, Sales, Financial Statements, Financial Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). And our first question comes from Amit Daryanani from RBC Capital Markets..

Amit Daryanani - RBC Capital Markets

Just a question one of your peers yesterday made a comment that they are starting to see stability in the auto patterns, at least on in the month of March. I'm curious, are you seeing similar trends. Are things stabilizing in terms of the build plans in the autos that you are getting from your customers?

Paul Nicoletti

Amit, when we last spoke last quarter, we told you that we saw some pretty big declines when we came back from the holidays. We've not seen the same level of volatility, I would say, in the last month or so. Obviously, visibility continues to be poor, but suffice to say that we have not seen the same level of volatility that we saw at the beginning of the quarter.

Amit Daryanani - RBC Capital Markets

All right. Then just with the cash position that we have, it is nice to see you guys buyback some debt last quarter. What type of expectations should we have in terms of cash usage going forward, would you continue to buyback debt or would you look to do something else with that.

Craig Muhlhauser

We are looking at both the options. We have a number of new program opportunities to invest in for future growth and we're also looking at continued improvements to the balance sheet. So we're looking at both and keeping our options open there.

Operator

And our next question comes from Jim Suva of Citigroup.

Jim Suva - Citigroup

Craig, you've been very relentless at cutting costs and focusing on customers that are profitable and disengaging yourself from customers that may not have a long-term profitable interest in conjunction with you. Congratulations on that.

It seems like, if I understand things correctly, that that disengagement or walking away from those customers is completely all done now. And accordingly, we all know it is a difficult environment from a demand perspective. When exactly should we expect Celestica to return to sales growth?

Craig Muhlhauser

Well, Jim, you're right. We have focused on building the operating platform, strengthening our execution and obviously demonstrating the fact that we're putting the foundation in place for future investments for growth. You're going to see some seasonality here as we go into the third quarter as our consumer business begins to rebound.

 

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