Celestica Announces Fourth Quarter 2019 Financial Results
Celestica Inc. (TSX: CLS)(NYSE: CLS), a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, announced financial results for the quarter ended December 31, 2019 (Q4 2019).
Q4 2019 Highlights
- Revenue: $1.49 billion, within our Q4 2019 guidance range of $1.425 to $1.525 billion, decreased 14% compared to $1.73 billion for the fourth quarter of 2018 (Q4 2018).
- Operating margin (non-IFRS)*: 2.9%, above our Q4 2019 guidance of 2.8% at the mid-point of our revenue and non-IFRS adjusted EPS* guidance ranges, compared to 3.5% for Q4 2018.
- Advanced Technology Solutions (ATS) segment revenue**: increased 3% compared to Q4 2018, and represented 39% of total revenue, compared to 33% of total revenue for Q4 2018; ATS segment margin** was 3.0%, compared to 3.7% for Q4 2018.
- Connectivity & Cloud Solutions (CCS) segment revenue**: decreased 22% compared to Q4 2018, and represented 61% of total revenue, compared to 67% of total revenue for Q4 2018; CCS segment margin** was 2.9%, compared to 3.3% for Q4 2018.
- IFRS earnings (loss) per share: $0.05 loss per share, compared to $0.44 earnings per share (EPS) for Q4 2018.
- Adjusted EPS (non-IFRS)*: $0.18 per share, at the high end of our Q4 2019 guidance range of $0.12 to $0.18 per share, compared to $0.29 per share for Q4 2018.
- Adjusted return on invested capital (non-IFRS)*: 10.6%, compared to 15.0% for Q4 2018.
- Free cash flow (non-IFRS)*: positive $43.8 million, compared to negative $30.4 million for Q4 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 that we are entering 2020 with improving financial results, and an increased focus on opportunities better aligned to our strengths and strategy.”
