Per share information based on diluted

shares outstanding unless noted otherwise).

Third Quarter 2009 Summary

--------------------------

- Revenue of $1,556 million, compared to $2,031 million for the same

period last year

- GAAP loss of $0.6 million or $0.00 per share, compared to GAAP net

earnings of $32.1 million or $0.14 per share last year

- Adjusted net earnings of $0.17 per share, compared to $0.24 per share

for the same period last year

- Return on invested capital, including intangibles, of 21.9%, compared

to 13.9% last year

- Operating margin of 3.4%, compared to 3.2% last year

- Adjusted gross margin of 7.0%, compared to 7.4% last year

- Cash flow from operations of $146 million, free cash flow of

$139 million

- Fourth quarter revenue guidance of $1.55 billion - $1.70 billion,

adjusted net earnings per share of $0.14 - $0.20

TORONTO, Oct. 22 /CNW/ - Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced financial results for the third quarter ended September 30, 2009.

Revenue for the quarter was $1,556 million, compared to $2,031 million in the third quarter of 2008. GAAP net loss was $0.6 million, or $0.00 per share, compared to GAAP net earnings of $32.1 million, or $0.14 per share, for the same period last year. The year- over-year change reflects the impact of weaker end-market demand, as well as higher restructuring costs in 2009 associated with the company's previously announced restructuring program.

Adjusted net earnings for the quarter were $39.5 million, or $0.17 per share, compared to adjusted net earnings of $54.3 million, or $0.24 per share, for the same period last year. The term adjusted net earnings is a non-GAAP measure defined as net earnings before other charges, amortization of intangible assets (excluding amortization of computer software), option expense, gains or losses related to the repurchase of shares and debt, net of tax and significant deferred tax write-offs or recoveries. Detailed GAAP financial statements and supplementary information related to adjusted net earnings appears at the end of this press release.

The company's revenue and adjusted net earnings for the third quarter of 2009 met the high end of the company's published guidance, announced on July 23, 2009, of revenue of $1.425 billion to $1.575 billion and adjusted net earnings per share of $0.11 to $0.17.

For the nine months ended September 30, 2009, revenue was $4,428 million, compared to $5,743 million for the same period in 2008. GAAP net earnings were $23.9 million, or $0.10 per share, compared to $101.7 million, or $0.44 per share, for the same period last year. Adjusted net earnings for the nine months ended September 30, 2009 were $93.8 million, or $0.41 per share, compared to $128.6 million, or $0.56 per share, for the same period in 2008.

"Celestica continues to deliver improved operating performance and financial results despite a very challenging and volatile business environment," said Craig Muhlhauser, President & CEO. "One of the company's goals during this downturn was to continue to deliver on our commitments to our customers and increase our return on invested capital even at the low point of an economic cycle. We are very pleased with the performance we have achieved thus far."

Debt Redemption

---------------

In September 2009, the company announced its intention to redeem all of its outstanding 7.875% Senior Subordinated Notes due 2011 (Notes), with an aggregate principal amount of $339.4 million. In accordance with the terms of the Notes, the company will redeem the Notes at a price of 101.969% of the principal amount, plus accrued and unpaid interest to the redemption date. The company will complete the redemption in the fourth quarter of 2009 and expects to record a gain of approximately $10 million on redemption.

The company plans to fund the redemption using existing cash resources. After giving effect to the completion of the Notes redemption as of September 30, 2009, the company's cash balance would have been $906 million, and our Senior Subordinated Notes due 2013 remains at $223 million. The company also estimates a reduction to its 2010 net interest expense of approximately $14 million.

Fourth Quarter Outlook

----------------------

For the fourth quarter ending December 31, 2009, the company anticipates revenue to be in the range of $1.55 billion to $1.70 billion, and adjusted net earnings per share to range from $0.14 to $0.20.

Third Quarter Webcast

---------------------

Management will host its quarterly results conference call today at 4:30 p.m. Eastern. The webcast can be accessed at www.celestica.com.

Supplementary Information

-------------------------

In addition to disclosing detailed results in accordance with Canadian generally accepted accounting principles (GAAP), Celestica provides supplementary non-GAAP measures as a method to evaluate the company's operating performance. See table below.

Management uses adjusted net earnings as a measure of enterprise- wide performance. Management believes adjusted net earnings is a useful measure for management, as well as investors, to facilitate period-to-period operating comparisons. Adjusted net earnings do not include the effects of other charges, most significantly the write- down of goodwill and long-lived assets, gains or losses on the repurchase of shares or debt and the related income tax effect of these adjustments, and any significant deferred tax write-offs or recoveries. The company also excludes the following recurring charges: restructuring costs, option expense, the amortization of intangible assets (except amortization of computer software), and the related income tax effect of these adjustments. The term adjusted net earnings does not have any standardized meaning prescribed by GAAP and is not necessarily comparable to similar measures presented by other companies. Adjusted net earnings is not a measure of performance under Canadian or U.S. GAAP and should not be considered in isolation or as a substitute for net earnings prepared in accordance with Canadian or U.S. GAAP. The company has provided a reconciliation of adjusted net earnings, which is a non- GAAP measure, to Canadian GAAP net earnings below.

About Celestica

---------------

Celestica is dedicated to delivering end-to-end product lifecycle solutions to drive our customers' success. Through our simplified global operations network and information technology platform, we are solid partners who deliver informed, flexible solutions that enable our customers to succeed in the markets they serve. Committed to providing a truly differentiated customer experience, our agile and adaptive employees share a proud history of demonstrated expertise and creativity that provides our customers with the ability to overcome any challenge.

For further information on Celestica, visit its website at http:/ /www.celestica.com. The company's security filings can also be accessed at http://www.sedar.com and http://www.sec.gov.

Safe Harbour and Fair Disclosure Statement

------------------------------------------

This news release contains forward-looking statements related to our future growth, trends in our industry, our financial and/or operational results including anticipated expenses, the expected gains from our recently announced intention to redeem our 7.875% Senior Subordinated Notes due 2011, and our financial or operational performance. Such forward-looking statements are predictive in nature and may be based on current expectations, forecasts or assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially from the forward- looking statements themselves. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "believes", "expects", "anticipates", "estimates", "intends", "plans", or similar expressions, or may employ such future or conditional verbs as "may", "will", "should" or "would", or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, and in any applicable Canadian securities legislation. Forward-looking statements are not guarantees of future performance. You should understand that the following important factors could affect our future results and could cause those results to differ materially from those expressed in such forward- looking statements: the challenges of effectively managing our operations during uncertain economic conditions, including significant changes in demand from our customers as a result of the impact of the global economic downturn and capital markets weakness; the risk of potential non-performance by counterparties, including but not limited to financial institutions, customers and suppliers; the effects of price competition and other business and competitive factors generally affecting the EMS industry, including changes in the trend for outsourcing; our dependence on a limited number of customers; variability of operating results among periods; the challenge of managing our financial exposures to foreign currency fluctuations; the challenge of responding to changes in customer demand; our inability to retain or grow our business due to execution problems resulting from significant headcount reductions, plant closures and product transfers associated with restructuring activities; our dependence on industries affected by rapid technological change; our ability to successfully manage our international operations; and the delays in the delivery and/or general availability of various components and materials used in our manufacturing process. These and other risks and uncertainties, as well as other information related to the company, are discussed in the Company's various public filings at www.sedar.com and www.sec.gov, including our Annual Report on Form 20-F and subsequent reports on Form 6-K filed with the Securities and Exchange Commission and our Annual Information Form filed with the Canadian Securities Commissions. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Except as required by applicable law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

As of its date, this press release contains any material information associated with the Company's financial results for the third quarter ended September 30, 2009 and revenue and adjusted net earnings guidance for the fourth quarter ending December 31, 2009. Revenue and earnings guidance is reviewed by the Company's Board of Directors. Our revenue and earnings guidance is based on various assumptions which management believes are reasonable under the current circumstances, but may prove to be inaccurate, and many of which involve factors that are beyond the control of the Company. The material assumptions may include the following: forecasts from our customers, which range from 30 to 90 days; timing and investments associated with ramping new business; general economic and market conditions; currency exchange rates; pricing and competition; anticipated customer demand; supplier performance and pricing; commodity, labor, energy and transportation costs; operational and financial matters; technological developments; and the timing and execution of our restructuring plan. These assumptions are based on management's current views with respect to current plans and events, and are and will be subject to the risks and uncertainties referred to above. It is Celestica's policy that revenue and earnings guidance is effective on the date given, and will only be updated through a public announcement.

The following table sets forth, for the periods indicated, a reconciliation of Canadian GAAP net earnings to adjusted net earnings and other non-GAAP information (in millions of U.S. dollars, except per share amounts):

2008 2009

Three months ----------------------------- --------------------- --------

ended Adjust- Adjust-

September 30 GAAP ments Adjusted GAAP ments Adjusted

--------- --------- --------- --------- --------- ---------

Revenue $2,030.8 $ - $2,030.8 $1,556.2 $ - $1,556.2

Cost of

sales(1) 1,880.8 (0.5) 1,880.3 1,448.4 (0.5) 1,447.9

--------- --------- --------- --------- --------- ---------

Gross profit 150.0 0.5 150.5 107.8 0.5 108.3

SG&A(1)(2) 83.0 (0.6) 82.4 54.0 (0.8) 53.2

Amortization

of intangible

assets(2) 6.3 (3.4) 2.9 4.7 (1.9) 2.8

Other charges 16.4 (16.4) - 43.5 (43.5) -

--------- --------- --------- --------- --------- ---------

Operating

earnings -

EBIAT(3) 44.3 20.9 65.2 5.6 46.7 52.3

Interest

expense, net 9.8 - 9.8 8.4 - 8.4

--------- --------- --------- --------- --------- ---------

Net earnings

(loss)

before tax 34.5 20.9 55.4 (2.8) 46.7 43.9

Income tax

expense

(recovery) 2.4 (1.3) 1.1 (2.2) 6.6 4.4

--------- --------- --------- --------- --------- ---------

Net earnings

(loss) $ 32.1 $ 22.2 $ 54.3 $ (0.6) $ 40.1 $ 39.5

--------- --------- --------- --------- --------- ---------

--------- --------- --------- --------- --------- ---------

W.A. no. of

shares (in

millions) -

diluted 230.3 230.3 229.5 231.7

Earnings per

share -

diluted $ 0.14 $ 0.24 $ 0.00 $ 0.17

ROIC(4) 13.9% 21.9%

Free cash

flow(5) $ 57.4 $ 139.1

2008 2009

Nine months ----------------------------- --------------------- --------

ended Adjust- Adjust-

September 30 GAAP ments Adjusted GAAP ments Adjusted

--------- --------- --------- --------- --------- ---------

Revenue $5,742.8 $ - $5,742.8 $4,427.8 $ - $4,427.8

Cost of

sales(1) 5,352.3 (2.3) 5,350.0 4,107.1 (1.8) 4,105.3

--------- --------- --------- --------- --------- ---------

Gross profit 390.5 2.3 392.8 320.7 1.8 322.5

SG&A(1)(2) 215.1 (2.7) 212.4 183.3 (2.8) 180.5

Amortization

of intangible

assets(2) 20.5 (11.8) 8.7 15.3 (6.9) 8.4

Other charges 23.3 (23.3) - 76.7 (76.7) -

--------- --------- --------- --------- --------- ---------

Operating

earnings -

EBIAT(3) 131.6 40.1 171.7 45.4 88.2 133.6

Interest

expense, net 28.8 - 28.8 29.3 - 29.3

--------- --------- --------- --------- --------- ---------

Net earnings

before tax 102.8 40.1 142.9 16.1 88.2 104.3

Income tax

expense

(recovery) 1.1 13.2 14.3 (7.8) 18.3 10.5

--------- --------- --------- --------- --------- ---------

Net earnings $ 101.7 $ 26.9 $ 128.6 $ 23.9 $ 69.9 $ 93.8

--------- --------- --------- --------- --------- ---------

--------- --------- --------- --------- --------- ---------

W.A. no. of

shares (in

millions) -

diluted 230.0 230.0 230.5 230.5

Earnings per

share -

diluted $ 0.44 $ 0.56 $ 0.10 $ 0.41

ROIC(4) 12.1% 18.1%

Free cash

flow(5) $ 144.4 $ 196.2

(1) Non-cash option expense included in cost of sales and SG&A is added

back for adjusted net earnings.

(2) Certain 2008 GAAP numbers have been restated to reflect the change in

accounting for computer software effective January 1, 2009 as

required under Canadian GAAP. For the third quarter of 2008,

$2.9 million in amortization of computer software has been

reclassified from SG&A expenses to amortization of intangible assets

(first nine months of 2008 - $8.7 million). Amortization of computer

software is not added back for EBIAT and adjusted net earnings. There

is no impact to our current or previously reported EBIAT, adjusted

net earnings or net earnings.

(3) Management uses EBIAT as a measure to assess operating performance.

Excluded from EBIAT are the effects of other charges, most

significantly the write-down of goodwill and long-lived assets, gains

or losses on the repurchase of shares or debt, the related income tax

effect of these adjustments, and any significant deferred tax

write-offs or recoveries. We also exclude the following recurring

charges: restructuring costs, option expense, amortization of

intangible assets (except amortization of computer software),

interest expense or income, and the related income tax effect of

these adjustments. Management believes EBIAT, which isolates

operating activities before interest and taxes, is an appropriate

measure for management, as well as investors, to compare the

company's operating performance from period-to-period. The term EBIAT

does not have any standardized meaning prescribed by Canadian or U.S.

GAAP and is therefore unlikely to be comparable to similar measures

presented by other companies. EBIAT is not a measure of performance

under Canadian or U.S. GAAP and should not be considered in isolation

or as a substitute for net earnings prepared in accordance with

Canadian or U.S. GAAP.

(4) Management uses ROIC as a measure to assess the effectiveness of the

invested capital it uses to build products or provide services to its

customers. The ROIC metric used by the company includes operating

margin, working capital management and asset utilization. ROIC is

calculated by dividing EBIAT by average net invested capital. Net

invested capital consists of total assets less cash, accounts

payable, accrued liabilities and income taxes payable. The term ROIC

does not have any standardized meaning prescribed by Canadian or U.S.

GAAP and is therefore unlikely to be comparable to similar measures

presented by other companies. ROIC is not a measure of performance

under Canadian or U.S. GAAP and should not be considered in isolation

or as a substitute for any standardized measure.

(5) Management uses free cash flow as a measure to assess cash flow

performance. Free cash flow is calculated as cash generated from

operations less capital expenditures (net of proceeds from the sale

of surplus property and equipment). The term free cash flow does not

have any standardized meaning prescribed by Canadian or U.S. GAAP and

is therefore unlikely to be comparable to similar measures presented

by other companies. Free cash flow is not a measure of performance

under Canadian or U.S. GAAP and should not be considered in isolation

or as a substitute for any standardized measure.

GUIDANCE SUMMARY

3Q 09 Guidance 3Q 09 Actual 4Q 09 Guidance(6)

----------------- ----------------- -----------------

Revenue $1.425B - $1.575B $1.556B $1.55B - $1.70B

Adjusted net EPS $0.11 - $0.17 $0.17 $0.14 - $0.20

(6) Guidance for the fourth quarter is provided only on an adjusted net

earnings basis. This is due to the difficulty in forecasting

the various items impacting GAAP net earnings, such as the amount and

timing of our restructuring activities.

CELESTICA INC.

CONSOLIDATED BALANCE SHEETS

(in millions of U.S. dollars)

December 31 September 30

2008 2009

------------ ------------

Assets (unaudited)

Current assets:

Cash and cash equivalents (note 6)........... $ 1,201.0 $ 1,261.4

Accounts receivable (note 10(c))............. 1,074.0 854.0

Inventories (note 2)......................... 787.4 697.5

Prepaid and other assets (note 7(i))......... 87.1 55.3

Income taxes recoverable..................... 14.1 20.5

Deferred income taxes........................