TORONTO – Celestica reported fourth quarter revenue of $1.5 billion, up 9% year-over-year.

Advanced Technology Solutions segment revenue increased 23% compared to the fourth quarter of 2020, driven by strong revenue growth in capital equipment, returning growth in the industrial business and the addition of PCI in November.

ATS segment revenue increased 11% in 2021 compared to 2020, exceeding the company’s 10% revenue growth target. For 2022, as a result of organic growth and the addition of PCI, Celestica expects ATS segment revenue of approximately $2.8 billion.

Free cash flow for the fourth quarter was $35.6 million, compared to $18.5 million in the same period the prior year. Cash provided by operations was $65.8 million, compared to $49.7 million in the fourth quarter of 2020.

“Celestica’s solid performance in the fourth quarter capped a successful 2021 for our company. We returned to top-line year-over-year revenue growth; our non-IFRS operating margin of 4.9% marked yet another record; our non-IFRS adjusted EPS of $0.44 was our highest in more than 20 years, and we closed on our acquisition of PCI,” said Rob Mionis, president and CEO, Celestica. “Our results continue to affirm our confidence in our long-term strategy, the capabilities of our global team, and our optimism for 2022.

“We enter 2022 with confidence that Celestica is well-positioned to be successful. Our focus is squarely on meeting our 2022 performance expectations while successfully managing the dynamic macro environment.”

For the first quarter of 2022, Celestica expects revenue between $1.4 billion and $1.55 billion. For 2022, revenue is expected to increase to at least $6.3 billion.

Global supply chain constraints continued to impact the company in 2021, resulting in extended lead times for certain components, and impacting the availability of materials required to support customer programs. Advanced planning processes, supply chain management and collaboration with customers and suppliers helped partially mitigate the impact of these constraints on revenue. Celestica expects this pressure to persist throughout 2022.

The firm estimates it had an aggregate adverse revenue impact of approximately $55 million in the fourth quarter of 2021 as a result of supply chain constraints that prevented it from fulfilling customer orders, up from approximately $30 million in the third quarter. Such constraints adversely impacted ATS segment revenue approximately $20 million.

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