UPDATE 1-Laird sales continue to slide in Q2; shares fall

* Sees first-half sales down 35 percent

* Underlying profit margin squeezed

* Shares fall 10 percent

(Adds detail, reaction, shares)

LONDON, June 30 (Reuters) - British electronics group Laird (LRD.L) said sales continued to slide in the second quarter as customers delayed restocking and underlying demand stayed weak, sending its shares down 10 percent on Tuesday .

Laird, which makes electromagnetic shielding for Nokia (NOK1V.HE) and Samsung (005930.KS) mobile phones, said like-for-like sales fell about 35 percent in constant currency terms, a mild worsening from 32 percent in the first quarter.

The company said its Telematics antennae business had been hit by the bankruptcy fillings of Chrysler and General Motors, as well as the weakening of the dollar against sterling.

Its underlying profit margin also declined in the second quarter, and was expected to be in mid-single digits for the first half.

Shares in Laird, which previously said it expected destocking to end in the second quarter, were down 10 percent to 164 pence by 0753 GMT.

Analyst Steve Medlicott at Altium, who has a 'sell' rating on the company, said the trading statement created more questions than answers. "While Laird is reasonably positive on prospects for the second half, they report still seeing no sign of a recovery in the second quarter," he said in a note.

Laird said it expected to see a pick-up in demand in the second half, driven by replenishment of inventories in the global supply chain.

It was due to report first-half results on July 30. (Reporting by Paul Sandle; Editing by Dan Lalor)