NZ's Rakon posts half year loss on downturn, currency

WELLINGTON, Nov 12 (Reuters) - New Zealand electronics company Rakon Ltd (RAK.NZ) reported a loss in first half net profit on Thursday as the global downturn and high currency hit its earnings.

The company's loss after tax for the six months to Sept 30 was NZ$6.2 million ($4.5 million), compared with a profit of NZ$2 million last year.

Rakon said revenue was down 9 percent on a year ago as intense competition drove down prices and the high NZ dollar dented its overseas earnings, costing it NZ$4.2 million.

However, it said it still expected to post operating earnings of between NZ$4 million and NZ$8 million for the full year.

In line with the company's policy, no dividend was declared.

Shares in Rakon closed on Wednesday at NZ$1.17, having fallen nearly 11 percent so far this year, compared with a gain of more than 16 percent in the benchmark top 50 .NZ50 index.

Rakon makes components for global positioning systems, mobile phones and for aerospace industries.

The company said in September it had raised NZ$45 million through a share issue to fund expansion of its Chinese operations. ($1=NZ$1.35)