UPDATE 1-Kety cuts outlook on record zloty, shares drop

(Adds second-quarter results, market reaction)

WARSAW, July 31 (Reuters) - Polish aluminium product maker Kety KETY.WA cut its 2008 outlook on Thursday because of a record high zloty and softer demand on local and some European markets, pushing its shares lower.

By 0830 GMT, shares in Kety fell 3.1 percent to 78 zlotys, valuing it at $355 million. The stock has lost almost half of its value so far this year on concerns over the effect of the strengthening local currency on its margins.

Kety, which makes aluminium products for the construction sector, slashed its full-year sales and net profit forecasts by 16 percent each to 1.28 billion zlotys ($620.1 million) and 85 million, respectively.

It also cut its expectation for EBITDA (earnings before interest, tax, depreciation and amortisation) by 10 percent to 208 million and operating profit by 13 percent to 127 million.

Like other Polish exporters, Kety has suffered from a rapid appreciation of the zloty after the local currency climbed 11 percent against the euro so this year.

Kety also said on Thursday its second-quarter net profit edged up four percent to 21.4 million zloty, while the revenue fell five percent to 304.8 million. (Reporting by Chris Borowski and Piotr Skolimowski; Editing by Paul Bolding)