Mr. Craig Muhlhauser reports

CELESTICA ANNOUNCES FIRST QUARTER 2015 FINANCIAL RESULTS & INTENTION TO COMMENCE UP TO $350 MILLION SUBSTANTIAL ISSUER BID

Celestica Inc. has released financial results for the first quarter ended March 31, 2015.

(All amounts in U.S. dollars. Per share information based on diluted shares outstanding unless otherwise noted.)

First-quarter 2015 highlights:

• Revenue: $1,299-million, within guidance range of $1,275-million to $1,375-million (announced Jan. 20, 2015), decreased 1 per cent compared with the first quarter of 2014;
• Revenue from diversified end market represented 28 per cent of total revenue, consistent with the first quarter of 2014;
• Operating margin (non-international financial reporting standards): 3.1 per cent, flat compared with the first quarter of 2014;
• IFRS earnings per share: 11 cents per share, compared with 20 cents per share for the first quarter of 2014;
• Adjusted EPS (non-IFRS): 19 cents per share, within the range of guidance of 18 to 24 cents per share (announced Jan. 20, 2015), compared with 26 cents per share for the first quarter of 2014 (which had included a six-cent-per-share net income tax benefit);
• ROIC (non-IFRS): 16.8 per cent, compared with 16.1 per cent for the first quarter of 2014;
• Free cash flow (non-IFRS): positive $22.0-million, compared with negative $16.2-million for the first quarter of 2014;
• Repurchased and cancelled 6.1 million subordinate voting shares for $69.8-million under current normal course issuer bid, including 4.4 million subordinate voting shares repurchased for $50.0-million pursuant to a previously disclosed program share repurchase, financed in December, 2014.

"Celestica delivered revenue and adjusted earnings per share in line with our guidance," said Craig Muhlhauser, Celestica's president and chief executive officer. "Despite a challenging demand environment, we also delivered year-over-year improvement in free cash flow, driven by our continued strong operational performance throughout our global network.

"In addition, our board of directors has authorized a substantial issuer bid to repurchase for cancellation up to $350-million of our subordinate voting shares. Our intention to launch an issuer bid, along with the investments we are making to support the future growth and profitability of our business, reinforce our confidence in our strategy and ability to generate free cash flow to support our growth, while continuing to return capital to our shareholders through share repurchases."

Celestica intends to repurchase up to $350-million of its subordinate voting shares through a substantial issuer bid

The board of directors has authorized a substantial issuer bid to repurchase for cancellation up to $350-million of subordinate voting shares. The company intends to launch and complete the offer during the second quarter of 2015. At the commencement of the offer, Celestica will establish the minimum and maximum tender price that shareholders who choose to participate in the offer may specify. The company intends to finance any purchase of subordinate voting shares pursuant to the offer using a combination of the net proceeds of an expected new $250-million non-revolving term loan, cash drawn on the company's existing revolving credit facility, and available cash on hand. The offer will not be conditioned on the term loan.

Second-quarter 2015 outlook

For the second quarter ending June 30, 2015, the company anticipates revenue to be in the range of $1.35-billion to $1.45-billion, and non-IFRS adjusted net earnings per share to be in the range of 20 to 26 cents. The company expects a negative six-cent- and 11-cent-per-share (pretax) impact on net earnings on an IFRS basis for employee stock-based compensation expense, amortization of intangible assets (excluding computer software) and restructuring charges.

First-quarter 2015 webcast and annual shareholders meeting webcast

Management will host its first-quarter 2015 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. Webcasts of each event can be accessed on the company's website.

                                   GUIDANCE SUMMARY

                                   Q1 2015 guidance  Q1 2015 actual      Q2 2015 guidance

IFRS revenue (in billions)         $1.275 to $1.375          $1.299        $1.35 to $1.45   
Non-IFRS adjusted EPS (diluted)      $0.18 to $0.24           $0.19        $0.20 to $0.26   

                                                                                                                                                                                           
                   CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
              (in millions of U.S. dollars, except per share amounts)

                                                          Three months ended
                                                                    March 31, 
                                                            2014        2015

Revenue                                                 $1,312.4    $1,298.5
Cost of sales                                            1,222.0     1,207.1
                                                        ---------   ---------
Gross profit                                                90.4        91.4
Selling, general and administrative expenses                55.0        55.4
Research and development                                     3.9         6.2
Amortization of intangible assets                            2.8         2.3
Other charges (recoveries)                                  (2.5)        0.3
                                                        ---------   ---------
Earnings from operations                                    31.2        27.2
Finance costs                                                0.5         0.5
                                                        ---------   ---------
Earnings before income taxes                                30.7        26.7
Income tax expense (recovery)
Current                                                     (9.9)        5.4
Deferred                                                     3.3         1.6
                                                        ---------   ---------
                                                            (6.6)        7.0
                                                        ---------   ---------
Net earnings for the period                             $   37.3    $   19.7
                                                        =========   =========
Basic earnings per share                                $   0.21    $   0.11
Diluted earnings per share                              $   0.20    $   0.11

We seek Safe Harbor.