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While Celestica Inc.’s (NYSE:CLS) presentation in New York on Tuesday provided an update of what its corporate strategy will be under new CEO Craig Muhlhauser, the company is clearly not out of the woods yet.

Recent problems at the electronics manufacturer’s plant in Mexico helped drive its stock to an all-time low. Several management changes also ensued.

Celestica’s new strategy hopes to better address accountability and authority issues on all levels, Merrill Lynch analyst Steven Fox said in a research note, but he thinks this could take time to enforce.

As for the problems in Mexico, operational improvements are not expected to hit the break-even point until the second half of the year, which is in line with Mr. Fox’s expectations.

Celestica moved six of its 16 customers from its facility in Monterrey to an estimated five sites in Asia, he said, adding that these six represent roughly one third of the US$45-million in annual losses from its Mexico operations.

He also said that most of the problems in Mexico were “people driven bottlenecks.”

Mr. Fox, who reiterated his “neutral” rating on Celestica shares, is also surprised that Celestica is not actively pursuing the automotive market, given Mr. Muhlhauser’s experience with Ford Motor Co. (NYSE:F) and Visteon Corp. (NYSE:VC).

CLS 1-yr chart:

CLS 1-yr chart

Source: Celestica: Despite New CEO, Not Out of the Woods Yet