UPDATE 2-Benchmark profit falls on restructuring charges

(Adds share move, buyback)

NEW YORK, July 26 (Reuters) - Contract manufacturer Benchmark Electronics Inc. (BHE.N) on Thursday posted lower quarterly earnings, hurt by restructuring charges, and said demand for the current quarter was softer than expected.

Shares in Benchmark fell 5.3 percent to $22.73 in morning trading on the Nasdaq.

The company, which makes computers, telecommunications equipment and other electronics, posted second-quarter net income of $25.9 million, or 35 cents a share, compared with $27.5 million, or 42 cents a share, a year earlier.

Excluding restructuring costs and other items, the profit would have been 39 cents a share.

Sales rose to $756 million from $749 million.

Analysts had forecast earnings of 38 cents a share, excluding items, and revenue of $756.8 million, according to Reuters Estimates.

Benchmark said it expected a "more moderate demand environment" in the third quarter than previously anticipated, but noted that its effect on full-year revenue and earnings guidance would only be slight.

The company also said on Thursday its board had approved a buyback of up to $125 million worth of its shares.

Benchmark forecast third-quarter earnings of 38 cents to 42 cents per share, excluding special items, on revenue of $730 million to $770 million.

Analysts had expected earnings of 42 cents a share on revenue of $781.4 million, according to Reuters Estimates.

For the full year, Benchmark said it expected sales of $3 billion to $3.1 billion, with profit before special costs at $1.58 to $1.66 per share.

Analysts were expecting profit of $1.64 a share and revenue of $3.1 billion. (Reporting by Franklin Paul)