UPDATE 1-Thai Union Frozen raises 2008 dollar sales target

(Adds details, Q1 results)

BANGKOK, May 12 (Reuters) - Thai Union Frozen Products PCL TUF.BK, Asia's biggest canned tuna exporter, said on Monday it expected 20 percent growth in dollar sales in 2008, up from a previous target of 12 percent, after strong quarterly sales.

TUF, whose key "Chicken of the Sea" brand accounts for about one third of earnings, posted an above-forecast 10 percent net profit rise for January-March to 578 million baht ($18 million) after it cut costs and sold new products.

"Reflecting on our performance in Q1, we have built a strong foundation to grow further. Therefore, we decide to raise our target of dollar sales growth rate to 20 percent for 2008," company president Thiraphong Chansiri said in a statement.

TUF has aimed for dollar revenues of $1.8 billion this year and baht revenues of 58.9 billion baht, up 6 percent.

First-quarter sales rose 20 percent to 15.4 billion baht, with tuna making up half the total and frozen shrimp attributing about 19 percent, it said.

Nine analysts polled by Reuters Estimates expected the firm to have 2008 revenues of 57.4 billion baht and net profit of 1.88 billion baht, up 3.2 percent.

Chicken of the Sea's share of the U.S. market is about 20 percent, behind Del Monte Food Co's (DLM.N: Quote, Profile, Research, Stock Buzz) StarKist and Bumble Bee Seafoods, a unit of Connors Brothers Income Fund of Canada.

At the midday break, TUF shares were down 2.1 percent at 18.60 baht and the main Thai stock index .SETI was off 0.27 percent. ($1=32.17 Baht) (Reporting by Viparat Jantraprap; Editing by Ian Geoghegan)