October 22, 2013 / 10:02 PM / 5 years ago

UPDATE 1-Celestica profit jumps due to strong demand from telcos

* 3rd-quarter earnings/shr $0.31 vs $0.21 year earlier

* Revenue falls 5 pct

Oct 22 (Reuters) - Canadian contract electronics manufacturer Celestica Inc’s third-quarter net profit rose 31 percent, helped by higher demand from telecom companies for its networking equipment.

The company, which has been trying to shrug off the loss of a BlackBerry Ltd contract for several quarters, is focusing on its communications and diversified businesses to tap spending by telecom, aerospace and defense companies.

The company said it expects restructuring charges related to the loss of its BlackBerry contract to be at the high end of its previously provided range of $55-$65 million.

Net income rose to $57.4 million, or 31 cents per share in the third quarter ended Sept. 30, from $43.7 million, or 21 cents per share, a year earlier.

Total revenue fell 5 percent to $1.49 billion.

Analysts on average had expected earnings of 21 cents per share on revenue of $1.49 billion, according to Thomson Reuters I/B/E/S.

Revenue from the company’s communications and storage business, which supplies equipment to companies such as Cisco Systems Inc and Juniper Networks Inc, accounted for 45 percent of the total revenue.

The business comprised 37 percent of total revenue in the year-ago quarter.

Shares of the company, whose rivals include Benchmark Electronics Inc and Flextronics International Ltd , closed at C$10.78 on the Toronto Stock Exchange on Tuesday. They have risen 12 percent in the last three months.

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