TORONTO – Celestica recorded third quarter revenue of $1.52 billion, a decrease of 11% year-over-year.

The EMS firm's advanced technology solutions unit's revenue was relatively flat compared to the third quarter of 2018 and represented 37% of total revenue, compared to 33% of total revenue last year.

Connectivity and cloud solutions revenue decreased 17% year-over-year, representing 63% of total revenue, compared to 67% of total revenue in 2018.

Free cash flow in the third quarter was $66.2 million, compared to $24.6 million in the same period last year.

"Celestica delivered solid third quarter results, with revenue and non-IFRS operating margin above our expectations, and another quarter of strong free cash flow," said Rob Mionis, president and CEO. "While our ATS segment continues to be impacted by softness in our capital equipment business, our CCS segment delivered sequential and year-over-year segment margin improvement, driven by our cost-efficiency initiatives and improved mix, supported by our CCS portfolio review.

"We believe the actions we are taking are strengthening our company. We remain focused on driving productivity, successfully ramping new programs and diversifying our revenue mix to improve profitability and deliver strong and consistent financial returns over the long term."

Celestica posted $70 million in restructuring charges from the commencement of its cost-efficiency initiative through the end of the third quarter, including $10.5 million of restructuring charges recorded during that period. The company estimates approximately $5 million of additional restructuring charges in the fourth quarter related to this initiative, completing the $75 million program. Celestica is launching a new $30 million restructuring program associated primarily with actions related to the disengagement from Cisco and expects related charges to be recorded by the end of 2020.

The firm expects fourth quarter revenue of $1.425 billion to $1.525 billion.

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