Celestica Inc., a global leader in the delivery of end-to-end product life cycle solutions, today announced financial results for the fourth quarter ended December 31, 2009. Revenue for the quarter was $1,664 million, compared to $1,935 million in the fourth quarter of 2008, reflecting primarily the impacts of weaker end-market demand. GAAP net earnings were $31.1 million, or $0.13 per share, compared to GAAP net loss of $822.2 million, or $3.58 per share, for the same period last year. GAAP net loss in the fourth quarter of 2008 was primarily a result of an $850.5 million, or $3.71 per share, write-off for impairment of goodwill.

Adjusted net earnings for the quarter were $49.5 million, or $0.21 per share, compared to adjusted net earnings of $65.2 million, or $0.28 per share, for the same period last year. The term adjusted net earnings is a non-GAAP measure defined as net earnings (loss) before other charges, amortization of intangible assets (excluding amortization of computer software), total stock-based compensation including option and restricted stock expense, and gains or losses related to the repurchase of shares and debt, net of tax and significant deferred tax write-offs or recoveries. All non-GAAP measures disclosed in this release, including comparables for prior periods, reflect the revised definitions, unless otherwise specified.

Fourth Quarter Results Compared to Guidance

The company's revenue for the fourth quarter of 2009 of $1.66 billion compares to the company's published guidance, announced on October 22, 2009, of revenue of $1.55 billion to $1.70 billion.

The company's published guidance on October 22, 2009 for adjusted net earnings per share of $0.14 to $0.20 did not reflect the revised definition for this metric. The guidance for adjusted net earnings per share, using the revised definition, would have been $0.16 to $0.22. The company's adjusted net earnings per share for the fourth quarter of 2009 was $0.21, and met the high end of this range.

Annual Results

For 2009, revenue was $6,092 million, compared to $7,678 million for 2008. GAAP net earnings were $55.0 million, or $0.24 per share, compared to a GAAP net loss of $720.5 million, or $3.14 per share, for 2008. Adjusted net earnings for 2009 were $158.5 million, or $0.69 per share, compared to $204.2 million, or $0.89 per share, in 2008.

"Celestica continued to deliver strong operational and financial performance in the fourth quarter as end-market demand strengthened," said Craig Muhlhauser, President and CEO. "In 2009, our continuously improving operational effectiveness and cost productivity resulted in some of the strongest financial results in the company's history. We believe the company is very well-positioned to build on its 2009 successes and momentum in 2010."

2011 Debt Redemption

In November 2009, the company redeemed its outstanding 7.875% Senior Subordinated Notes due 2011 for $346.1 million, excluding accrued interest. The 2011 Notes had a principal amount of $339.4 million. The company recorded a gain of $10.4 million on redemption. This gain is excluded from adjusted net earnings.

2013 Debt Redemption

The company announced that it will exercise its option to redeem all of its outstanding 7.625% Senior Subordinated Notes due 2013.

The outstanding principal amount of the 2013 Notes is $223.1 million. In accordance with the terms of the Notes, the redemption will be at a price of 103.813% of the principal amount, together with accrued and unpaid interest to the redemption date.