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Celestica Slices Forecast

Fourth-quarter profits will be much lower than its prior outlook.


(CLS) - Get Celestica Inc. Report

stock tanked Tuesday after the electronics manufacturing firm slashed its profit and sales forecast for the fourth quarter.

Shares of the Toronto-based company tumbled 11.5%, or $1.08, to $8.29 on volume that was heavier than normal.

For the quarter ending Dec. 31, Celestica now expects revenue of between $2.2 billion and $2.25 billion, down from its

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October projection of $2.25 billion to $2.45 billion. At the same time, Celestica had been predicting adjusted earnings of 15 cents to 23 cents a share, but now expects no more than 6 cents.

Analysts polled by Thomson First Call were anticipating net income of 19 cents a share on sales of $2.36 billion.

The company blamed the reduced projections on lower demand from several customers, and said an increase in inventory provisions at its Monterrey, Mexico, factory will result in a charge of 8 cents to 12 cents a share.

The warning marked the second time in two weeks Celestica has had something unexpected for shareholders. On Nov. 27, the company

abruptly named President Craig Muhlhauser to the added role of CEO, succeeding Stephen Delaney. Celestica issued a short statement saying that Delaney had decided to leave in order to pursue other interests.

Celestica will report its fourth-quarter results on Jan. 30.