UPDATE 1-Australia's CSL says Q1 in line with expectations

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MELBOURNE, Oct 17 (Reuters) - CSL Ltd (CSL.AX: Quote, Profile, Research, Stock Buzz), the world's top maker of plasma products, said on Wednesday it had performed in line with expectations in the first quarter.

It also noted the adverse impact of the strong Australian dollar, which has hit 23-year highs against the U.S. dollar <AUD=> this month, given that it gets around 90 percent of its earnings from offshore.

"We estimate that if recent exchange rates prevail until the end of this financial year there will be an adverse impact of approximately A$65 million ($57.5 million) to net profit after tax," said CSL Chairman Elizabeth Alexander in an address to shareholders.

She said this was consistent with the company's guidance in August. The Australian dollar was then trading around 80 U.S. cents.

"Given translation for reporting purposes does not reflect cash flow, CSL does not consider it appropriate or economic to hedge these earnings," Alexander said. UBS analysts last Friday cut their recommendation on CSL to neutral from buy and reduced earnings forecasts because of the adverse currency impact.

The company posted a 48 percent rise in annual net profit for 2007, while its shares have surged 52 percent since the start of the year compared with 18 percent for the broader market.

Back in August, CSL forecast growth in net profit after tax in fiscal 2008 of between A$670 million and A$700 million, subject to variables such as exchange rate moves and royalties from sales of cervical cancer vaccine Gardasil by Merck (MRK.N: Quote, Profile, Research, Stock Buzz).