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Celestica announces adjustment to non-cash, deferred tax recovery reported in the second quarter ended June 30, 2007
Celestica announces adjustment to non-cash, deferred tax recovery reported in the second quarter ended June 30, 2007.
About this update from Celestica Inc.
[{"type":"text","content":"\n\n\n\n(All amounts in U.S. dollars.\n\n\nPer share information based on diluted shares outstanding unless noted\n\n\notherwise.)\n\n\nTORONTO, Oct. 15 /CNW/ - Celestica Inc. (NYSE, TSX: CLS), a global\nprovider of innovative electronics manufacturing services (EMS), today\nannounced an adjustment to a non-cash, deferred tax recovery previously\nreported in the second quarter ended June 30, 2007.\n\n\nThe company has determined that the assumptions used in the second\nquarter to record a non-cash, deferred tax recovery relating to a tax benefit\nresulting from a previous year's write-down of an acquired and subsequently\nrestructured Canadian operation were incorrect. An error in the cost basis for\ntax purposes of that Canadian acquisition led to the incorrect presumption\nthat a tax benefit could be realized in the second quarter. Accordingly,\ndeferred tax recovery and GAAP net earnings for the three and six months ended\nJune 30, 2007 have been adjusted downward by $44.1 million, respectively.\nBasic and diluted GAAP earnings per share for the three and six months ended\nJune 30, 2007 have been adjusted from $0.11 and $(0.04), respectively to\n$(0.08) and $(0.23), respectively. The company has adjusted its prior period\nbalances in accordance with accounting standards and is filing amended\nfinancial statements to reflect the change.\n\n\nThe change to the deferred tax recovery has no impact on reported\nadjusted net earnings and adjusted net earnings per share for the second\nquarter of 2007 of $4.9 million or $0.02 per share, respectively, and has no\nimpact on revenue, operating earnings or cash. (Adjusted net earnings is\ndefined as net earnings before amortization of intangible assets, gains or\nlosses on the repurchase of shares and debt, integration costs related to\nacquisitions, option expense, option exchange costs and other charges, net of\ntax and significant deferred tax write-offs or recovery).\n\n\nThe company also reconfirmed its revenue outlook for the third quarter\nended September 30, 2007 of $2.0 billion to $2.2 billion, and its expected\nadjusted net earnings per share of $0.04 to $0.12.\n\n\nThe company's third quarter results will be released on Thursday, October\n25, after markets close, followed by a webcast at 4:30 p.m. which can be\naccessed at www.celestica.com.\n\n\nSupplementary Information\n\n...