UPDATE 2-Advanced Medical posts net profit vs loss

* Stock rallies over 20 percent

* 11-cent EPS net profit vs 43-cent loss

* Sales up 1 percent

* Refractive business remains weak (Adds quote from CEO, stock movement)

CHICAGO, Oct 31 (Reuters) - Advanced Medical Optics Inc EYE.N posted a net profit versus a year-ago loss, even as its eye surgery business declined further amid a weak economy.

The company, a maker of eye-care products and lasers used for vision correction surgery, said its third-quarter net profit was $7.1 million, or 11 cents per share, compared with a loss of $25.9 million, or 43 cents per diluted share, a year ago, when a recall and acquisition-related charges hurt results.

The average estimate on Wall Street was for a profit of 12 cents per share, according to Reuters Estimates.

The latest quarter included an $11 million restructuring charge and other items.

Sales rose 1 percent to $275.6 million, helped by strength in its cataract business, which generates almost half of the company's sales, and foreign exchange translations.

"Our results clearly reflect the ongoing impact of deteriorating economic conditions on our refractive business, particularly in the U.S. and Europe," Chairman and Chief Executive Jim Mazzo said in a statement.

He said management is focused on improving efficiencies and controlling discretionary spending.

The company's shares, which hit a record low of $2.88 earlier this week, rose 98 cents, or 20.7 percent, to $5.71 in afternoon trading on the New York Stock Exchange. (Reporting by Debra Sherman, editing by Dave Zimmerman and Tim Dobbyn)