UPDATE 1-Morgan Crucible to miss margin target in H1

* Sees high-single digit H1 margins vs target double-digits

* Sees markets deteriorating further

* Cuts further 200 jobs in April

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LONDON, May 15 (Reuters) - British industrial materials group Morgan Crucible Co (MGCR.L) said on Friday first-half operating margins would only be in the high-single digits, missing its target of double-digit margins.

The group, whose carbon and ceramic components are used to make products from body armour to hip replacements, has a long term goal "to reach mid-teen operating profit margins in good times and double digit margins in bad times".

It said on Friday it expects markets to deteriorate further and said it has cut a further 200 jobs in April to reduce its cost base.

First-half revenues would be close to 500 million pounds ($756 million), compared with 401 million last year, as the weak pound helps offset reduced demand in its end-markets. Morgan Crucible, which renewed its banking facilities last month, said its carbon division had experienced difficult trading conditions in the first half, while its NP Aerospace business was performing above expectations thanks to contract wins from the British government.

Its shares, which hit a 6-year low of 66.5 pence in March, closed on Thursday at 116.25 pence, valuing the company at 308.6 million pounds. (Reporting by Victoria Bryan; Editing by Paul Sandle) ($1=.6611 Pound)