Celestica announce Q1 - revenue up, earnings improve

First Quarter Summary

- Year-over-year revenue growth of 7% to $2,151 million
- GAAP net loss of ($0.05) per share compared to ($0.06) last year
- Adjusted net earnings of $0.15 per share compared to $0.02 a year ago
- Operating margin of 2.3% compared to 0.5% a year ago
- Q2 revenue guidance of $2.1 - $2.35 billion, adjusted net earnings of  $0.13 - $0.21

Celestica Inc. (NYSE: CLS, TSX: CLS/SV) announced financial results for the first quarter ended March 31, 2005.

Revenue was $2,151 million, up 7% from $2,017 million in the first quarter of 2004. Net loss on a GAAP basis for the first quarter was ($11.6) million or ($0.05) per share, compared to a GAAP net loss for the first quarter of 2004 of ($12.1) million or ($0.06) per share. Included in these results is $31.9 million in charges associated with the companyâ??s previously announced restructuring activities.

Adjusted net earnings for the quarter were $33.4 million or $0.15 per share compared to $4.5 million or $0.02 per share for the same period last year.  Adjusted net earnings is defined as net earnings before amortization of intangible assets, gains or losses on the repurchase of shares and debt, integration costs related to acquisitions, option expense and other charges, net of tax (detailed GAAP financial statements and supplementary information related to adjusted net earnings appear at the end of this press release). These results compare with the company's guidance for the first quarter, announced on January 27, 2005, of revenue of $2.0 - $2.225 billion and adjusted net earnings per share of $0.10 to $0.18.

"Results for the quarter were as expected and continue to demonstrate the steady progress being made at Celestica," said Steve Delaney, CEO, Celestica. "Our employees continue to execute well and are driving efficiency in all areas of the operations. For the remainder of the year, our focus will be to further improve our financial returns, complete our restructuring initiatives, and grow our revenue base through additional penetration of diversified end markets, expansion of our services offering and superior execution for our customers."

Outlook
For the second quarter ending June 30, 2005, the company anticipates revenue to be in the range of $2.1 billion to $2.35 billion, and adjusted earnings per share ranging from $0.13 to $0.21.

First Quarter and Annual Meeting Web Casts
The company's annual shareholder meeting is being held today in Toronto and will commence at 10:00 a.m. Eastern time at the Hotel Intercontinental, Ballroom A, 225 Front Street West.

For those unable to attend, a live web cast of management's presentation will be available at www.celestica.com. Management's presentation will commence at approximately 10:10 a.m. and will include comments on both 2004 results and on the first quarter results, as well as the second quarter outlook.

Management will also host its regular quarterly conference call at 4:00 p.m. today which can also be accessed at www.celestica.com.