July 22, 2011 / 4:03 PM / 6 years ago

UPDATE 4-Celestica profits triples, shares jump

* Q2 net profit $0.21/share vs $0.06/share

* Revenue rise to $1.83 billion from $1.59 billion

* Company sees demand influenced by economic uncertainty

* Shares rise as much as 15 percent in Toronto

(Adds more background on revenue target.)

TORONTO, July 22 (Reuters) - Celestica Inc CLS.TO CLS.N said on Friday its quarterly profit more than tripled as new business awards pushed revenue higher, and shares of the contract electronics manufacturer rose as much as 10 percent.

Profit rose to $45.7 million, or 21 cents a share, in the second quarter, compared with $13 million, or 6 cents a share, a year earlier. On an adjusted basis it earned 27 cents per share.

“New business awards from 2010 are contributing to our revenue growth and operating margins are benefiting from a favorable revenue mix and higher operating efficiencies from recently ramped programs,” Chief Executive Craig Muhlhauser said in a release.

The company expects sales of $1.8 billion in the current quarter, give or take $75 million, and adjusted net earnings between 23 cents to 29 cents a share.

The Canadian-based company said an uncertain global economic climate was continuing to have an impact on customer demand.

Revenue for the company, whose top customers include IBM IBM.N and Cisco CSCO.O, rose to $1.83 billion from $1.59 billion in the year earlier.

Chief Financial Officer Paul Nicoletti said during a conference call that the company will meet its target of 10 to 15 percent revenue growth in 2011.

But Celestica completed its acquisition of a contract manufacturing unit from Brooks Automation BRKS.O in the second quarter, and that unit’s contribution to revenue had not been included in the original target.

“One of our largest customers has commented that overall they do expect volumes to be down, so it’s safe to say that we are seeing an impact there,” said Nicoletti, without specifying the customer.

The company’s shares hit a two-year low in June after Research In Motion, RIM.TO one major customer, reported disappointing results and provided a dismal outlook.

First-quarter earnings reflected smaller-than-expected orders from Oracle, whose purchase of Sun Microsystems last year brought new server business to Celestica.

Celestica shares rose 14.1 percent early on Thursday to C$9.17 on the Toronto Stock Exchange and 13.3 percent to $9.65 on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore and Allison Martell in Toronto; Editing by Maju Samuel)

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