TORONTO – Celestica recorded second quarter revenue of $1.45 billion, a decrease of 15% year-over-year.

Advanced Technology Solutions (ATS) segment revenue increased 2% and represented 39% of total revenue, compared to 33% in the second quarter of 2018.

Connectivity & Cloud Solutions (CCS) segment revenue decreased 23% year-over-year and represented 61% of total revenue, compared to 67% in the same period last year.

"Celestica delivered second quarter results in line with our guidance, including another quarter of strong non-IFRS free cash flow," said Rob Mionis, president and CEO. "Our CCS segment delivered improved sequential and year-to-year margin performance, and we continue to progress on our portfolio optimization actions.

"While the ongoing weak demand in our capital equipment business continues to adversely impact our ATS segment performance, our other ATS businesses are performing well, as we ramp new programs and continue to drive productivity. Despite the volatility, we believe capital equipment remains an attractive market in the long term, and we have the right strategy, relationships and capabilities in place to be successful in this business in future periods."

Celestica recorded approximately $60 million in restructuring charges through the end of the quarter, including $9 million of restructuring charges during the quarter. The firm estimates total restructuring charges to be at the high end of the previously disclosed $50 million to $75 million. Celestica continues to expect the remainder of the charges to be recorded by the end of 2019.

The firm expects third quarter revenue of $1.4 billion to $1.5 billion.

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