UPDATE 2-Krka Jan-June net steady, '09 fcast unchanged

* H1 group net at 78.1 mln euros

* 2009 forecast remains unchanged

* Too early to say if 09 profit upped by provision release

* H1 group sales up by 2 pct

* Shares up by 1.66 pct (Updates with quotes, details, background)

By Manca Ulcar

TRSKA GORA, Slovenia, July 30 (Reuters) - Pharmaceutical company Krka (KRKG.LJ) said on Thursday that January-to-June group net profit was 78.1 million euros ($110.1 million), little changed from the 78.4 million in the same period of 2008.

It also said its forecast for 2009 remains unchanged, but added that the company will review the forecast again at the end of the third quarter of the year.

"The exchange rate of local currencies is the main reason that the (half-year) result is not better but we are satisfied with it," Chief Executive Joze Colaric told a news conference.

The company said earlier in July group sales in the first half of 2009 rose by 2 percent to 477.9 million euros.

Krka said in November it expects 2009 group net profit to rise by 3 percent to 161 million euros while sales are seen up 11 percent at 1.06 billion.

In May Colaric said full-year profit could be boosted by an additional 69 million euros as the group expected to release provisions of 87.7 million euros set aside for lawsuits over patents that were this year revoked by the European Patent Office.

On Thursday he confirmed that Krka will probably be able to release those provisions, but may use the money to form new provisions rather than to increase the full-year profit.

"There is a big possibility that the provisions will be released but as a good manager we will also think about a possibility to form new provisions. Today it is too early to talk about that," he said.

EYING TAKEOVER TARGETS

He said Krka was determined to remain independent, but was eying takeover targets in Western Europe, mainly small and medium-sized companies, but gave no further details.

Analysts said the half-year result was in line with expectations and will not influence the share price significantly.

"This result ... is not disappointing but it is also not particularly good. I do not expect it will have a major influence on the share price particularly since liquidity on the market is low," Jan Koradin of brokerage Ilirika told Reuters, adding liquidity was low due to the holiday season.

Shares of Krka rose by 1.66 percent to 70 euros on Thursday while the blue-chip SBI index .SBI gained 0.67 percent.

Colaric said some production units will have to halve their planned two-week holiday in August because of the high level of orders and added that the workforce is due to rise by 6 percent this year to 8,055 employees.

Krka also plans to reduce business travel and large company meetings in order to prevent a possible spread of the H1N1 virus in the company. No one at Krka had contracted the virus so far, but 124 cases were confirmed in Slovenia. ($1=.7095 Euro) (Additional reporting, writing by Marja Novak, Edited by David Cowell and Rupert Winchester)