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TORONTO – Celestica reported fourth quarter revenue of $1.49 billion, down 14% year-over-year.

Advanced Technology Solutions segment revenue increased 3% compared to the fourth quarter of 2018, and represented 39% of total revenue, compared to 33% of total revenue in the prior-year period.

Connectivity & Cloud Solutions segment revenue decreased 22% year-over-year, representing 61% of total revenue, compared to 67% of total revenue for the fourth quarter of 2018.

Free cash flow for the fourth quarter was $43.8 million.

Total company revenue for 2019 declined 11% compared to 2018.

"Celestica delivered solid execution of its strategy in the fourth quarter, with non-IFRS adjusted EPS at the high end of our guidance range and continued sequential expansion of our non-IFRS operating margin," said Rob Mionis, president and CEO.

"In 2019, the Celestica team focused on putting the building blocks in place for long-term success. This included executing actions associated with our CCS portfolio-review program and productivity initiatives, as well as ramping several new programs. While there is still more work to do, we believe we are entering 2020 with improving financial results and an increased focus on opportunities better aligned to our strengths and strategy."

Celestica recorded an aggregate of $81.3 million in restructuring charges from the fourth quarter of 2017 through its completion at the end of 2019, including $11.3 million of restructuring charges recorded during the fourth quarter of 2019.

The firm intends to incur $30 million in restructuring charges in 2020, associated primarily with its disengagement from Cisco.

For the first quarter of 2020, Celestica expects revenue of $1.425 billion to $1.525 billion.

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