UPDATE 1-RC2 posts quarterly loss on charges

*Q4 loss of $12.32 a share

*Q4 EPS 43 cents, excluding charges

*Sees 2009 earnings flat to slightly up

Feb 18 (Reuters) - Toy company RC2 Corp (RCRC.O) posted a quarterly loss, mainly hurt by charges, and said results for the first half of 2009 may fall below prior year adjusted amounts, as falling consumer spending and foreign currency fluctuations affect business.

Last month, the toy retailer had warned it would take up non-cash impairment charges of about $245 million to $265 million, mainly due to a decline its market capitalization.

Fourth-quarter sales fell 12 percent to $121.7 million.

Profits were also negatively impacted by declines in holiday spending, conservative retailer ordering and unfavorable foreign currency exchange translation, Chief Executive Curt Stoelting said in a statement.

Oak Brook, Illinois-based RC2 posted a loss of $212.4 million, or $12.32 per share, compared with net income of $0.4 million, or $0.02 per share, in the year ago quarter.

However, excluding charges, the company earned 43 cents a share, against analyst estimates of 37 cents a share.

The fourth quarter saw an impact of $12.75 per share on goodwill and product-recall related charges, the company, which also forecast full-year 2009 earnings to be flat to slightly up, said.

Earlier on Wednesday, rivals Jakks Pacific Inc (JAKK.O) reported a wider-than-expected quarterly loss, hurt by higher costs for product testing after having to recall its toys.

Shares of RC2 were trading unchanged at $5.08 after the bell, Wednesday on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Jarshad Kakkrakandy)