Mr. Craig Muhlhauser reports

CELESTICA ANNOUNCES FIRST QUARTER 2014 FINANCIAL RESULTS

Celestica Inc. today released financial results for the first quarter ended March 31, 2014. All amounts are in United States dollars. Per-share information is based on diluted shares outstanding unless otherwise noted.

First-quarter 2014 highlights

Revenue was $1.312-billion, compared with the company's guidance of $1.30-billion to $1.40-billion (announced Jan. 30, 2014), a decrease of 4 per cent compared with the first quarter of 2013.

International financial reporting standards earnings per share were 20 cents, compared with six cents per share for the first quarter of 2013.

Adjusted EPS (non-IFRS) was 26 cents per share, above the range of the company's guidance of 17 cents to 23 cents per share (announced Jan. 30, 2014), due to a six-cent-per-share net income tax benefit recognized in the first quarter of 2014 as described below. Excluding the six-cent-per-share net income tax benefit, adjusted EPS increased four cents per share compared with 16 cents per share for the first quarter of 2013.

Operating margin (non-IFRS) was 3.1 per cent, compared with 2.5 per cent for the first quarter of 2013.

The company repurchased 1.2 million subordinate voting shares for cancellation for $12.1-million under its normal course issuer bid and launched a $27-million prefinanced program share repurchase in the first quarter of 2014.

Free cash flow (non-IFRS) was negative $16.2-million, compared with positive $13.5-million for the first quarter of 2013.

Revenue dollars from diversified end market grew 10 per cent from the first quarter of 2013 to represent 28 per cent of total revenue, up from 24 per cent of total revenue for the first quarter of 2013

"Celestica delivered first-quarter revenue at the low end of our guidance range as end-market demand continued to be volatile, primarily within our communications business. Despite the challenges, we delivered operating results in line with our beginning-of-quarter expectations as a result of our focus on continuous improvement and disciplined cost management," said Craig Muhlhauser, Celestica president and chief executive officer. "We are encouraged by the progress that we have made in our business with double-digit year-over-year revenue growth in our diversified and storage end markets. We are also pleased with our operating margin improvements compared with the first quarter of 2013.

"We expect to build on this momentum during the remainder of 2014 by continuing to focus on making our customers successful and investing to achieve long-term growth and profitability for Celestica."

                         FIRST-QUARTER 2014 SUMMARY

                                               Three months ended March 31,
                                                        2013           2014  

Revenue (in millions)                              $ 1,372.4      $ 1,312.4
IFRS net earnings (in millions) (i)                $    10.5      $    37.3
IFRS EPS (i)                                       $    0.06      $    0.20
Adjusted net earnings (non-IFRS) 
(in millions) (ii)                                 $    30.0      $    47.1
Adjusted EPS (non-IFRS) (i) (ii)                   $    0.16      $    0.26
Non-IFRS return on invested capital (ii)               14.4%          16.1%
Non-IFRS operating margin (ii)                          2.5%           3.1%

(i) International financial reporting standards net earnings for the first 
quarter of 2014 included an aggregate charge of seven cents (pretax) per 
share for employee stock-based compensation expense and amortization of 
intangible assets (excluding computer software). This is within the range 
the company provided on Jan. 30, 2014, of an aggregate charge of between 
five cents and nine cents per share for these items. Included in the 
adjusted earnings per share (non-IFRS) of 26 cents for the first quarter 
of 2014 is a net income tax benefit of six cents per share, arising 
primarily from the recognition of previously unrecognized tax incentives 
related to one of the company's Malaysian subsidiaries (for details, see 
note 9 to the unaudited interim condensed consolidated financial 
statements).
(ii)  Non-IFRS measures do not have any standardized meaning prescribed by 
IFRS and therefore may not be comparable with similar measures presented 
by other companies using IFRS or other generally accepted accounting 
principles (GAAP).

      END MARKETS BY QUARTER AS A PERCENTAGE OF TOTAL REVENUE

                                                         2013  2014 
                                   Q1    Q2    Q3    Q4    FY    Q1

Communications                    40%   42%   45%   41%   42%   40%
Consumer                           7%    7%    6%    6%    6%    6%
Diversified (i)                   24%   25%   26%   27%   25%   28%
Servers                           16%   14%    9%   11%   13%   10%
Storage                           13%   12%   14%   15%   14%   16%
Revenue (in billions)           $1.37 $1.50 $1.49 $1.44 $5.80 $1.31

(i) The company's diversified end market is composed of industrial, 
aerospace and defence, health care, solar, green technology, 
semiconductor equipment, and other.

Second-quarter 2014 outlook

For the second quarter ending June 30, 2014, the company anticipates revenue to be in the range of $1.375-billion to $1.475-billion and non-IFRS adjusted net earnings per share to be in the range of 20 cents to 26 cents. The company expects a negative three-cent- to seven-cent-per-share (pretax) aggregate impact on net earnings on an IFRS basis for employee stock-based compensation expense and amortization of intangible assets (excluding computer software).

First-quarter 2014 webcast and annual shareholders meeting webcast

Management will host its first-quarter results conference call today at 8 a.m. Eastern Daylight Time. The company's annual meeting of shareholders will be held today at 9 a.m. Eastern Daylight Time at the TMX Broadcast Centre, the Exchange Tower, 130 King St. West, Toronto, Ont. Both webcasts can be accessed at the company's website.

Non-IFRS supplementary information

In addition to disclosing detailed results in accordance with IFRS, Celestica provides supplementary non-IFRS measures to consider in evaluating the company's operating performance. Management uses adjusted net earnings and other non-IFRS measures to assess operating performance and the effective use and allocation of resources, to provide more meaningful period-to-period comparisons of operating results, to enhance investors' understanding of the core operating results of Celestica's business, and to set management incentive targets. The company believes investors use both IFRS and non-IFRS measures to assess past, current and future decisions associated with strategy and its allocation of capital, as well as to analyze how businesses operate in, or respond to, swings in economic cycles or to other events that impact core operations.

We seek Safe Harbor.