UPDATE 2-Profit growth returns as Celestica shrugs off BlackBerry loss

Fri Jul 26, 2013 12:29pm EDT
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* Second-quarter revenue from communications business up 12 pct

* Total revenue declines 14 percent

* Adjusted profit of $0.21/share beats est $0.17

* Shares jump 9 pct to more than 2-year high (Adds CEO comments, background, share movement)

By Bhaswati Mukhopadhyay

July 26 (Reuters) - Contract electronics manufacturer Celestica Inc posted its first rise in profit in five quarters, sending its stock up the most in two years and allying concerns about its growth after it ended a contract with BlackBerry Ltd.

The 19 percent rise in profit in the second quarter was partly due to stronger-than-expected demand at the Canadian company's fastest growing and largest unit, communications, which makes networking equipment for telecom companies.

Chief Executive Craig Muhlhauser said the company was shifting its focus to communications and diversified businesses, away from the consumer business.

Sales from Blackberry, part of the company's consumer business, accounted for about 12 percent of revenue last year. Analysts have questioned the company's growth prospects ever since the company lost the contract.   Continued...