LI & Fung H2 profit up 7 pct, lags forecast

HONG KONG, March 24 - Consumer goods exporter Li & Fung Ltd on Thursday posted a 7 percent rise in profit for the second half of 2010, lagging analyst forecasts, as a pick-up in U.S. consumer demand boosted sales.

The company, which manages supply chains for retailers including Wal-Mart Stores Inc and Target Corp , posted a net profit of HK$2.11 billion ($270 million) for July-December, against HK$1.97 billion in the same period of 2009, according to Reuters' calculations based on full-year earnings.

The profit lagged a mean forecast of HK$2.86 billion for the second half of 2010, according to 13 analysts polled by Thomson Reuters I/B/E/S.

It posted a profit of HK$4.28 billion for 2010, against a consensus forecast of HK$5.03 billion, and HK$3.37 billion recorded for 2009.

Shares of Li & Fung rose 28.3 percent in the second half of 2010, outperforming a 14.4 percent rise by the Hang Seng Index . The shares are down 3.8 percent so far this year, against the broader market's 0.06 percent decline.