Celestica Inc.

Celestica
Type	Public
Industry	Electronics
Founded	1994
Headquarters	Toronto, Ontario
Key people	Craig H. Muhlhauser (CEO)
Products	Computing, communications, aerospace and defence, consumer, industrial, automotive electronics
Revenue	6.526 billion USD (2010)[1]
Net income	-14 million USD (2007)[1]
Employees	42,000 (2008)[1]
Parent	Onex Corporation
Website	www.celestica.com

Celestica Inc. (TSX: CLS NYSE: CLS) is a multinational electronics manufacturing services (EMS) company headquartered in Toronto, Canada. Celestica’s global manufacturing network comprises more than 40 locations in 11 countries in the Americas, Europe and Asia, supplying a wide variety of leading OEMs (original equipment manufacturers). In addition to manufacturing, the company's global services include design and engineering, systems assembly, fulfillment and after-market services.

History[link]

Origins[link]

Celestica's Toronto headquarters were originally the location of IBM's Toronto sales and support offices, which also supported a small manufacturing unit which built metal boxes for their mainframe computers and associated support systems. Eugene Polistuk, a graduate of the University of Toronto in 1969,^[2] joined IBM and rose through the ranks before taking over the Toronto manufacturing division in 1986.^[3]

As the world turned from mainframes to microcomputers, Polistuk's operations were forced to reduce headcount in 1986 and 1988. In response, Polistuk started to diversify the plant's product lines, building circuit boards, memory products and power supplies that could be used in a wide variety of IBM products. The $300 million investment was successful, and by 1993 most IBM divisions were buying some of the systems produced in Toronto. The factory site expanded several times.^[3]

Spin-off[link]

As IBM transitioned from a hardware company to a software and services company, the future of the manufacturing unit was in doubt despite its financial successes. In 1992 Polistuk suggested that the entire division be spun off into a separate company that would offer their services to anyone. His arguments slowly won over IBM's management, and in January 1994, Celestica was formed as a wholly owned subsidiary of IBM Canada.^[3] IBM's other divisions at the location moved to new buildings to the northeast, on the border of Markham.

Polistuk immediately invoked changes in order to break out of what he saw as a moribund management structure left over from the IBM days. An early move was to institute a 5% pay cut in exchange for a profit sharing program that could reap up to 30% of base pay.^[3] Another move was to make the same share offerings to everyone in the company, breaking with conventional options plans that offer the best prices to executives.^[2]

By the end of Celestica's first year of operations, they had signed up 40 new customers. Non-IBM customers had originally accounted for only 10% of their output, but was now standing at 30% and growing. This process was helped as major players in the computer industry started the process of outsourcing their own production systems. However, Polistuk felt that the only way to truly reach their potential was to have someone buy the company from IBM.^[3]

Onex purchase[link]

In May 1994, Polistuk met with Anthony Melman of Onex Corporation about a potential buy-out. IBM was not interested in selling, however, as the division was one of the most profitable sections of their Canadian operations. However, after continued agitation, in 1996 IBM Canada agreed to sell the business and hired Nesbitt Burns to find potential buyers. After a selection process, five were allowed to review Celestica's books. Onex's bid of $750 million for 69% of the company won the final selection in October 1996.^[3]

This triggered rapid expansion at Celestica. In 1997 they bought UK-based Design to Distribution, the manufacturing division of International Computers Limited which itself was part-owned by Fujitsu. Later that year they purchased major portions of Hewlett-Packard's manufacturing lines, including their PC board plant in Fort Collins, CO, their system assembly plant in New Hampshire, and their system design shop in Chelmsford, MA. In October they bought Ascent Power Technology, who had power supply manufacturing in Canada, the US and UK.^[3]

By the end of the year, only 25% of its business came from IBM.

Going public[link]

In July 1998 Onex took the company public, raising $414 million, the largest IPO in the EMS field. This infusion of capital sparked another round of growth, and during the year the company bought International Manufacturing Services in Asia, and added factories in northern California, Mexico, and Ireland. By the end of the year, the company was turning over $3.2 billion annually.^[3]

By 1998 the global EMS market was estimated to be around $60 billion, with projections that it would be over $150 billion 2003. Polistuk considered this to be conservative, noting "By 2001, to be among the largest contract manufacturers in this business, you'll need $10 billion in annual revenues. Just five years ago, nobody would have thought there would be a $10 billion EMS, but soon that is going to be the minimum to be a Tier 1 company."^[4]

Several additional stock offerings were made from the original Onex pool; $251 million in March 1999 and $225 million in May. A second public offering in November added $488 million. The money was used to fund more purchases, adding five factories in the Czech Republic, two in Italy and another each in Ireland, the US, Brazil and Malaysia. By the end of the year they had a turnover of $5.3 billion, making them the third largest EMS in the world. On 6 June 2001, Polistuk was appointed Chairman of the Board.^[5]

Crash[link]

The dot-com crash and telecoms crash in 2001 led to a worldwide drying-up of EMS work. In April 2001 the company announced it was laying off 3,000 people, about 10% of its workforce.^[6] The company later announced that Polistuk would be taking a 1/3 pay cut as part of a wider series of compensation rollbacks.^[7]

Several rounds of lowered guidance followed, in spite of new supplier contracts and continued acquisitions. Losses mounted, and on 29 January 2004, the company announced that Polistuk would be retiring. In April, Stephen Delaney took over the CEO position.^[8] A second round of layoffs followed in 2005, along with the sale of several divisions. Operations stabilized, along with the rest of the market, through 2008.

Operations[link]

Celestica’s global manufacturing network comprises more than 40 locations in the Americas, Europe and Asia. The company's global services include design and engineering, manufacturing and systems assembly, fulfillment and after-market services. Celestica also holds a contract for Xbox 360 console repairs for defective units produced in Canada.^{[citation needed]}

Controversy[link]

On Friday, 12 January 2007 a shareholder class action suit was filed in New York against Celestica and members of the company’s executive team. The complaint alleges that the company made materially false and misleading statements about the business and failed to disclose adverse facts, namely:

• (i) that the Company was experiencing declining demand in its Mexican operations and that the division was carrying significant amounts of unneeded inventory which would have to be written off;
• (ii) that the Company was experiencing declining demand in its Information Technology (IT) and Communications market segments as its larger customers scaled back purchases; and that the stock dropped when this information later became public.

This class action suit was dismissed in 2010.^[9]

References[link]

Notes[link]

Bibliography[link]

• (History), "International Directory of Company Histories: Celestica, Inc.", The Gale Group

• David Einstein, "Top Tech Execs: Eugene Polistuk", Forbes, 12 December 2000

• Robert McGarvey, "Outsourcers Rise Again", Upside, February 2000

External links[link]

Companies portal

• Company Website
• Company security filings
• Company security filings
• EMS Research On Celestica By iSuppli

Jools Holland
Holland at the British Academy Television Awards 2009
Background information
Birth name	Julian Miles Holland
Born	(1958-01-24) 24 January 1958 (age 54) Blackheath, London, England
Genres	Boogie-woogie, jazz, blues, R&B
Occupations	Musician, composer, television presenter, bandleader
Instruments	Piano, keyboard, guitar
Years active	1974–present
Associated acts	Squeeze Rhythm & Blues Orchestra
Website	Official site

Julian Miles "Jools" Holland OBE, DL (born 24 January 1958) is an English pianist, bandleader, singer, composer, and television presenter. He was a founder of the band Squeeze (1974-1980 & 1985-1990) and his work has involved him with many artists including Sting, Eric Clapton, George Harrison, David Gilmour, Magazine and Bono.

Holland is a published author and appears on television shows besides his own and contributes to radio shows. In 2004, he collaborated with Tom Jones on an album of traditional R&B music. He currently hosts Later... with Jools Holland, a music-based show aired on BBC2, on which his annual show Hootenanny, is based.^[1]

Life and career[link]

His great grandfather came from Ireland.^[2]

Holland played as a session musician before finding fame, and his first studio session was with Wayne County & the Electric Chairs in 1976 on their track "F*ck Off."^[3]

Holland was a founding member of the British pop band Squeeze, formed in March 1974, in which he played keyboards until 1981 and helped the band to achieve millions of record sales, before pursuing his solo career.^[3]

Holland began issuing solo records in 1978, his first EP being Boogie Woogie '78. He continued his solo career through the early 1980s, releasing an album and several singles between 1981 and 1984. He branched out into TV, co-presenting the Newcastle-based TV music show The Tube with Paula Yates. Holland achieved notoriety by inadvertently using the phrase "groovy fuckers" in a live, early evening TV trailer for the show, causing it to be suspended for six weeks.^[4] He referred to this in his sitcom "The Groovy Fellers" with Rowland Rivron.

Holland at the Tsunami Relief concert in Cardiff's Millennium Stadium, 22 January 2005

In 1983 Holland played an extended piano solo on The The's re-recording of "Uncertain Smile" for the album Soul Mining. In 1985, Squeeze (which had continued in Holland's absence through to 1982) unexpectedly regrouped including Jools Holland as their keyboard player. Holland remained in the band until 1990, at which point, he again departed Squeeze on amicable terms to resume his solo career as a musician and a TV host.

In 1987, Holland formed The Jools Holland Big Band which consisted of himself and Gilson Lavis from Squeeze. This gradually became his 18-piece Rhythm & Blues Orchestra.^[3]

Between 1988 and 1990 he performed and co-hosted along with David Sanborn during the two seasons of the music performance program Sunday Night on NBC late-night television.^[5] Since 1992 he has presented the music program Later... with Jools Holland, plus an annual New Year's Eve Hootenanny.

In 1996, Holland signed a recording contract with Warner Bros. Records,^[3] and his records are now marketed through Rhino Records.

Holland has a touring band, The Rhythm And Blues Orchestra, which often includes singers Sam Brown and Ruby Turner. In January 2005 Holland and his band performed with Eric Clapton as the headline act of the Tsunami Relief Cardiff.

Personal[link]

Holland lives in the Westcombe Park area of Blackheath in South East London, where he had his studio, Helicon Mountain, built to his design, inspired by Portmeirion, the setting for the 1960s TV series The Prisoner.^[6] Holland owns costumes and props from the series and occasionally appears wearing the trademark brown-with-white-pipe blazer featured in the series. In 1987, Holland demonstrated his love of the series and starred in a spoof documentary, The Laughing Prisoner, with Stephen Fry, Terence Alexander and Hugh Laurie.^[6] Much of it was shot on location in Portmeirion, with archive footage of Patrick McGoohan, and featuring musical numbers from Siouxsie and the Banshees, Magnum and XTC. Holland performed a number towards the end of the program. His younger brother, Christopher, also plays organ in the Rhythm & Blues Orchestra, as well as being a singer-songwriter.

Holland was an interviewer for The Beatles Anthology TV project, and appeared in the 1997 film Spiceworld as a musical director.

He received an OBE in 2003 in the Queen's Birthday Honours list, for services to the British music industry as a television presenter and musician. In September 2006 Holland was appointed a Deputy Lieutenant for Kent.^[7] He is also known for his charity work: in June 2006 he performed in Southend for HIV/AIDS charity Mildmay,^[8] and in early 2007 he performed at Wells and Rochester Cathedrals to raise money for maintaining cathedral buildings.^[9] He is also patron of the Drake Music Project^[10] and has raised many thousands of pounds for the charity.

Holland was appointed an Honorary Fellow of Canterbury Christ Church University at a ceremony held at Canterbury Cathedral on 30 January 2009.^[11]

On 29 August 2005 Holland married Christabel McEwen, his girlfriend of 15 years (between 1983 and 1995 she had been married to Edward Lambton, 7th Earl of Durham, before they divorced). The wedding, at St James's Church, Cooling near Rochester, was attended by many celebrities, including Ringo Starr, Robbie Coltrane, Stephen Fry, Lenny Henry, Noel Gallagher, Dawn French and Jennifer Saunders.^[12]

Holland is also a patron for The Milton Rooms, an Arts centre in Malton, North Yorkshire, along with Bill Nighy, Imelda Staunton and Kathy Burke.^[13]

Writing[link]

His 2007 biography, Barefaced Lies and Boogie Woogie Boasts was BBC Radio 4 "Book of the Week" in the week beginning 8 October 2007 and was read by Holland. He is the author or joint author of four other books.

Discography[link]

Albums that have charted and gained Certifications[link]

Releases[link]

• 1978 "Boogie Woogie '78" (EP)
• 1981 Jools Holland and His Millionaires
• 1984 Jools Holland Meets Rock 'A' Boogie Billy (U.S. release only)
• 1990 World Of His Own
• 1991 The Full Complement
• 1992 "Together Again" (single with Sam Brown)
• 1992 The A-Z Geographer's Guide To The Piano
• 1994 Solo Piano
• 1994 Live Performance
• 1996 " Jazz & Rock & Roll
• 1997 Lift The Lid
• 1998 Best Of
• 1999 Sunset Over London
• 2000 Hop The Wag
• 2001 Small World Big Band
• 2002 SWBB Volume Two: More Friends
• 2003 Jack O The Green (SWBB Friends 3)
• 2004 Tom Jones & Jools Holland
• 2005 Beatroute
• 2005 Swinging the Blues, Dancing the Ska
• 2006 Moving Out To The Country
• 2007 Best of Friends
• 2008 The Collection
• 2008 The Informer (With Ruby Turner)
• 2008 "The Informer" (single with Ruby Turner)
• 2009 "I Went By" (single with Louise Marshall)
• 2010 Rockinghorse

Film and television[link]

• 1981 Urgh! A Music War
• 1982 Police: Around the World
• 1982 - 1987 The Tube (Host for 121 editions)
• 1983 Rebellious Jukebox: Compere
• 1984 The Young Ones: Punk (Episode entitled "Summer Holiday")
• 1985 Walking To New Orleans (Jools Holland in New Orleans)
• 1987 Eat the Rich: Sun Reporter
• 1987 Filthy Rich & Catflap: Strip Show Pianist (Episode #1.3)
• 1987 The Laughing Prisoner: No. 7
• 1987 French and Saunders (Episode 1.5)
• 1988 Sunday Night: Host (unknown episodes)
• 1989 Juke Box Jury: Host (unknown episodes)
• 1989 The Groovy Fellers Himself, 6 episodes
• 1991 Mr Roadrunner (Jools Holland in Memphis)
• 1994 There's No Business: Pianist
• 1994 - 1995 Don't Forget Your Toothbrush
• 1995 The Beatles Anthology
• 1997 Spice World: Musical Director
• 1997 Name That Tune: Host and Pianist
• 2003 Jool's History of the Piano : Presenter
• 2006 Top Gear: Star in a reasonably priced car.
• 2007 Fairport@Forty: Interview
• 2009 Chop Shop Rover Concept: The Jet 1 Car : Customer

Current television programmes[link]

• 1992–present Later... with Jools Holland
• 1993–present Hootenanny

Books[link]

• "Rolling Stones": A Life on the Road, (with Dora Loewenstein), Viking/Allen Lane (1998), (ISBN 0-670-88051-5)
• Beat Route: Journeys Through Six Counties, Weidenfeld & Nicholson (1998), (ISBN 0-575-06700-4)
• Ray Charles: Man and Music, (with Michael Lydon), Payback Press (1999), (ISBN 0-86241-929-8)
• Hand That Changed Its Mind , International Music Publications (2007), (ISBN 1-84328-645-9)
• Barefaced Lies and Boogie-woogie Boasts , Michael Joseph Ltd (2007), (ISBN 0-7181-4915-7)

References[link]

External links[link]

• Official website
• Jools Holland at the Internet Movie Database
• Jools Holland's Radio 2 show at BBC Programmes
• Later...with Jools Holland at BBC Online