Celestica announced that Onex Corporation has completed their previously announced secondary offering

Celestica Announces Completion of Secondary Offering by Onex

Celestica Inc. (“Celestica”) (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that Onex Corporation (“Onex”) and certain of its affiliates have completed their previously announced secondary offering of 11,000,000 Subordinate Voting Shares (“SVS”) of Celestica, which were sold to a syndicate of underwriters led by CIBC and qualified for distribution under a short form prospectus of Celestica. Celestica did not receive any proceeds from the secondary offering.

Onex and its affiliates now own 100% of the Multiple Voting Shares (“MVS”) of Celestica and approximately 0.8% of the Subordinate Voting Shares of Celestica representing an approximately 8% economic interest in, and approximately 69% voting control of, Celestica. The number of outstanding shares of Celestica remains unchanged at approximately 229.9 million shares; consisting of approximately 211 million SVS and approximately 18.9 MVS.

NI Technology Updates Outlooks for Flextronics Benchmark Electronics Celestica Jabil Circuit and Sanmina-SCI

NI Technology Updates Outlooks for Flextronics, Benchmark Electronics, Celestica, Jabil Circuit and Sanmina-SCI

PRINCETON, N.J., Sept. 21 /PRNewswire/ — Next Inning Technology Research http://www.nextinning.com), an online investment newsletter focused on semiconductor and technology stocks, announced it has updated outlooks for Flextronics (Nasdaq: FLEX), Benchmark Electronics (NYSE: BHE), Celestica (NYSE: CLS), Jabil Circuit (NYSE: JBL) and Sanmina-SCI (Nasdaq: SANM).

During the July earnings season, editor Paul McWilliams was spot on. Not only was he the only one to predict Intel would report revenue of $8B, he laid out the details so accurately that one reader commented, “It was almost as though McWilliams wrote the script for the Intel conference call.”

With the October earnings season just around the corner, McWilliams has begun publishing his special “State of Tech” reports. In this series of reports, readers will find detailed data covering the sector leaders, commentary about sector trends and specific calls as to which stocks McWilliams thinks readers should buy and which he thinks they should sell.

To read the State of Tech reports, learn what McWilliams thinks Intel will report in Q3 and have full access to the Next Inning web site as well as a direct feed to McWilliams’ frequent investment ideas that have yielded a year-to-date return of 69% for the NI Portfolio, please visit the following link:

https://www.nextinning.com/subscribe/index.php?refer=prn878

McWilliams covers these topics and more in his State of Tech report:

— Flextronics is up over 230% since McWilliams called it a strategic buy in December. What fueled these impressive returns and should investors continue to hold the stock?

— Jabil Circuit is up 88% from where McWilliams called it a good speculative buy in December. Has the outlook changed for the company? Why should investors closely track Jabil’s relationship with Research in Motion?

— Benchmark is up 60% since McWilliams called it a good speculative buy in March. What is the “wildcard” that could have a big impact on an investment in Benchmark in the coming months?

— Celestica is up nearly 165% since McWilliams called it a good speculative buy in March. What factors have led McWilliams to view Celestica more positively in 2009? Has Celestica finally overcome the uneven execution that hampered it in the past?

— Should investors be tempted by Sanmina’s recent strong move higher? Is Sanmina likely to be an acquisition target, and which firms would be the most likely buyers?

CELESTICA ANNOUNCES FOURTH QUARTER AND FY2008 FINANCIAL RESULTS

TORONTO, Canada – Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2008.

Revenue was $1,935 million compared to $2,211 million in the fourth quarter of 2007. Net loss on a GAAP basis for the fourth quarter was ($822.2) million or ($3.58) per share, compared to a GAAP net loss of ($11.7) million or ($0.05) per share for the same period last year. The GAAP loss in the fourth quarter of 2008 was primarily a result of the write-off of the company’s remaining goodwill.

During the fourth quarter of 2008, the company performed its annual goodwill impairment test which resulted in the decision to write off the $850.5 million of goodwill on the company’s balance sheet. The goodwill write-off is non-cash in nature and does not affect liquidity, cash flows from operating activities, or compliance with debt covenants. The goodwill write-off is not deductible for income tax purposes and, therefore, the company has not recorded a corresponding tax benefit in 2008. (Additional detail on the impairment can be found in note 5(b) of the financial statements attached to this release).

Adjusted net earnings for the quarter were $59.1 million or $0.26 per share, including a $15.5 million or $0.07 per share benefit associated with a lower adjusted tax rate. These results compared to adjusted net earnings of $37.2 million or $0.16 per share for the same period last year. Adjusted net earnings is defined as net earnings before other charges, amortization of intangible assets, integration costs related to acquisitions, option expense, and gains or losses on the repurchase of shares and debt, net of tax and significant deferred tax write-offs or recovery (detailed GAAP financial statements and supplementary information related to adjusted net earnings appear at the end of this press release).

These revenue and adjusted net earnings results compare with the company’s guidance for the fourth quarter, announced on October 23, 2008, of revenue of $1.75 billion to $2.0 billion and adjusted net earnings per share of $0.16 to $0.24.

For 2008, revenue was $7,678 million compared to $8,070 million for 2007. Net loss on a GAAP basis was ($720.5) million or ($3.14) per share compared to GAAP net loss of ($13.7) million or ($0.06) per share last year. Adjusted net earnings for 2008 were $187.7 million or $0.82 per share compared to adjusted net earnings of $62.3 million or $0.27 per share in 2007.

“Despite the significant turmoil in the global economic environment, Celestica delivered strong operating results in the fourth quarter and throughout the year,” said Craig Muhlhauser, President and Chief Executive Officer, Celestica. “We had four positive quarters and generated full year gross margins of 7% and had operating margins of 3%. During the year, we generated free cash flow of $127 million and finished 2008 with a very strong balance sheet.

“While our operations performed very well in 2008, the current uncertain economic backdrop, combined with end-market weakness which accelerated in the fourth quarter, resulted in our decision to write-off our remaining goodwill. While end-market volatility is expected to continue throughout 2009, Celestica will remain focused on pursuing profitable revenue opportunities, while continuing to improve working capital efficiency, operating margins and free cash flow.”

First Quarter Outlook

For the first quarter ending March 31, 2009, the company anticipates revenue to be in the range of $1.4 billion to $1.6 billion, and adjusted net earnings per share to range from $0.07 to $0.13.

Fourth Quarter Webcast

Management will host its quarterly results conference call today at 4:15 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 also provides supplementary non-GAAP measures as a method to evaluate the company’s operating performance.

Management uses adjusted net earnings as a measure of enterprise-wide performance. As a result of restructuring activities, acquisitions made by the company, fair value accounting for stock options and securities repurchases, management believes adjusted net earnings are a useful measure for the company as well as its investors to facilitate period-to-period operating comparisons and allow the comparison of operating results with its competitors in the U.S. and Asia. Excluded from adjusted net earnings 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 and the related income tax effect of these adjustments, and any significant deferred tax write-offs or recovery. The company also excludes some recurring charges such as restructuring costs, option expense, the amortization of intangible assets, 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 are 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 to Canadian GAAP net earnings (loss) below

CELESTICA INC ANNOUNCES CASH TENDER OFFER FOR ITS 7875 SENIOR SUBORDINATED NOTES DUE 2011

Celestica is offering to purchase, for cash,up to $150,000,000 (the “Tender Cap”) aggregate principal amount of the Notes, in accordance with the modified Dutch Auction procedures, described below. As of February 26, 2009, approximately $489.4 million aggregate principal amount of Notes were outstanding.

The Offer will expire at 5 p.m. New York City time on March 26, 2009, unless extended or earlier terminated by Celestica (such date and time, as the same may be extended, the “Expiration. The Offer is subject to the satisfaction of certain conditions as described in the offer to purchase dated February 26, 2009 (as it may be amended or supplemented from time to time, the “Offer to Purchase”) and related letter of transmittal (as it may be amended or supplemented from time to time, the “Letter of Transmittal”).Holders must validly tender and not validly withdraw their Notes at or prior to 5 p.m., New York City time on March 11, 2009, unless extended by Celestica (such date and time, as the same may be extended, the “Early Tender Date”), in order to be eligible to receive the Total Consideration for their Notes.

The “Total Consideration” for each $1,000 principal amount of Notes validly tendered (and not validly withdrawn) pursuant to the Offer at or prior to the Early Tender Date and which are accepted for purchase by Celestica pursuant to the Offer will be equal to the Clearing Price (as defined below). The Total Consideration includes an amount (the “Early Tender Payment”) equal to $20 for each $1,000 principal amount of Notes accepted for purchase. The “Tender Offer Consideration” for each $1,000 principal amount of Notes validly tendered pursuant to the Offer (and not validly withdrawn) after the Early Tender Date and at or prior to the Expiration Date and accepted for purchase by Celestica will consist of the Total Consideration less the Early Tender Payment. Notes tendered may be validly withdrawn at any time at or prior to 5 p.m. New York City time on March 11, 2009, unless extended by Celestica (such date and time, as the same may be extended, the “Withdrawal Rights Deadline”), but not thereafter, except in the limited circumstances discussed in the Offer to Purchase.

The Offer is being conducted as a modified “Dutch Auction.” This means that holders who elect to participate must specify the price they would be willing to receive in exchange for each $1,000 principal amount of Notes they choose to tender in the Offer. The price that holders specify for each $1,000 principal amount of Notes must be in increments of $5.00, and must be within a range of $960(the “Minimum Offer Price”) to $1,010 (the “Maximum Offer Price”) per $1,000 principal amount of Notes. Holders who do not specify a price will be deemed to have specified a price equal to the Minimum Offer Price in respect of Notes tendered and to accept the Clearing Price determined by Celestica in accordance with the terms of the Offer to Purchase Tenders of Notes for which a price is specified below the Minimum Offer Price or in excess of the Maximum Offer Price will not be accepted and will not be used for the purpose of determining the Clearing Price. Tenders of Notes not submitted in whole increments of $5.00 will be rounded down to the nearest $5.00 increment.

Celestica, if it accepts Notes in the Offer, will accept Notes validly tendered (and not validly withdrawn)in the order of the lowest to the highest tender prices specified by tendering holders (in increments of $5.00), and will select the single lowest price (the “Clearing Price”) for each $1,000 principal amount of Notes to enable Celestica to purchase the principal amount of Notes equal to the $150,000,000 Tender Cap (or, if Notes in a principal amount less than the Tender Cap are validly tendered, all Notes so tendered). The price at which Notes were validly tendered (before the subtraction of the Early Tender Payment with respect to Notes validly tendered after the Early Tender Date) will be used for the purpose of determining the Clearing Price and proration as described below. Celestica will pay the same price (subject to adjustment, as described below) for all Notes validly tendered and not validly withdrawn at or below the Clearing Price and accepted for purchase by Celestica in the Offer, except the price paid for Notes validly tendered (and not validly withdrawn) after the Early Tender Date but at or prior to the Expiration Date will be reduced by the Early Tender Payment set out above.

If the aggregate principal amount of the Notes validly tendered at or below the Clearing Price and not validly withdrawn exceeds the Tender Cap, then, subject to the terms and conditions of the Offer, Celestica, if it accepts Notes in the Offer, will accept for purchase, first, Notes validly tendered (and not validly withdrawn) at prices (in increments of $5.00) below the Clearing Price and, thereafter, Notes validly tendered (and not validly withdrawn) at the Clearing Price on a prorated basis according to the principal amount of such Notes. All Notes not accepted as a result of proration and all Notes tendered at prices in excess of the Clearing Price will be rejected from the Offer and will be returned to tendering Holders at our expense promptly following the earlier of the Expiration Date or the date on which the Offer is terminated. We will make appropriate adjustments downward to the nearest $1,000 principal amount to avoid purchases of Notes in principal amounts other than integral multiples of $1,000.

Holders whose Notes are accepted by the Company for purchase pursuant to the Offer, will also be eligible to receive accrued and unpaid interest on their Notes accepted for purchase, up to, but excluding, the date of payment of the applicable consideration (the “Settlement Date”). The Settlement Date for the Offer will occur promptly following the Expiration Date.

The terms and conditions of the Offer are described in the Offer to Purchase and in the related Letter of Transmittal. Questions regarding the Offer may be directed to Banc of America Securities LLC, Global Debt Advisory Services, at 888-292-0070 (U.S. toll-free) and 704-388-9217 (collect). Copies of the Offer to Purchase and Letter of Transmittal may be obtained from the Information Agent for the Offer, Global Bondholder Services Corporation, at 866-389-1500 (U.S. toll-free) and 212-430-3774 (collect).

This press release is for informational purposes only. This announcement does not constitute an offer to purchase or a solicitation of any offer to sell the Notes or any other securities. The Offer is being made solely by the Offer to Purchase, dated February 26, 2009, and the related Letter of Transmittal.

The Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Offer to be made by a licensed broker or dealer, the Offers will be deemed to be made on behalf of Celestica, as the case may be, by the dealer manager, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

Revenue Celestica Inc

In what may be another sign that battered Celestica Inc. has finally turned the corner, the bond-watchers at Gimme Credit changed their credit score on the contract electronics manufacturer this morning to “stable” from “deteriorating.”

“After suffering revenue declines in two of the last three years, we are projecting a slight increase this year,” analyst Dave Novose says in a report. “Free cash flow turned positive in 2007 after being negative in three of the prior four years.”

He says, “Celestica has finally stabilized its operations in Mexico and Europe has seen some improvement” but warns that “the company will still be plagued by restructuring charges in the latter half of 2008.”

Celestica stock has jumped more than 60% this year to trade around $9.50 US on the NYSE. On April 24, RBC hiked its price target on the shares to $9 from $6 after the company’s first-quarter cash flow swung to a positive $47 million from a negative $101 million a year ago. But analyst Amit Daryanani stuck with a Hold on the stock, citing a “challenging macro environment.”

Upside may be limited for now because Bloomberg says analysts have an average target price of just $9.38 and the vast majority call Celestica a Hold.