TORONTO – Celestica reported fourth quarter revenue of $1.55 billion, down 4% year-over-year.
For the quarter ended Dec. 31, net earnings were $14.4 million, a decrease of 31.1% compared to the fourth quarter of 2016.
Revenue from the firm’s Advanced Technology Solutions (ATS) end market increased 6% compared to the same period the previous year, and represented 33% of total revenue, compared to 29% of total revenue for the fourth quarter 2016. Communications revenue decreased 12% and represented 40% of total revenue, compared to 44% in 2016. Enterprise revenue decreased 4% and represented 27% of total revenue for both the fourth quarter of 2016 and 2017.
Celestica recorded restructuring charges of $13.2 million for the quarter, compared to $24.4 million in the same period the prior year.
“Our fourth quarter results reflect continued progress in diversifying and growing our ATS revenue base, offset by lower revenues and adverse mix impacts from some of our communications and enterprise programs,” said Rob Mionis, president and CEO, Celestica. “Over the past two years, our strategic focus has been to diversify our revenue base by growing our ATS product portfolios, specifically in the aerospace and defense market, and we are seeing some positive and consistent results. While we still have more work to do, we are entering 2018 with more than $2 billion in sales from a growing and attractive ATS portfolio mix. We will look to grow that business through new program wins and targeted acquisitions that support our longer-term goals of having a highly diversified revenue stream, underpinned by industry leading returns.”
For the full year 2017, revenue was $6.1 billion, up 2% year-over-year. Net earnings were $105 million, a decrease of 23% compared to 2016.
Revenue of $1.95 billion from ATS was relatively flat compared to 2016. ATS represented 32% of total revenue for both 2016 and 2017. Communications revenue increased 4% and represented 43% of total revenue, compared to 42% in 2016. Enterprise revenue was relatively flat compared to 2016 and represented 25% of total revenue, versus 26%.
For the year, Celestica recorded restructuring charges of $28.9 million, compared to $31.9 million for 2016.