Pacifica said its net profit before one-off items fell 18.7 per cent to A$10.2 million in the six months to June 30, 1998.

The market was pleased with the result combined with news it was close to securing further significant contracts with overseas manufacturers in the next few months.

"These (new contract) volumes wont have any effect until 2001 and beyond, but it will lock in growth until 2005 which has been a major strategic aim," Pacifica managing director Barry Jackson told a media briefing.

Pacifica shares touched a high of A$3.83 after the result before closing 11 cents higher at A$3.76 on turnover of 765,187 shares.

Jackson would not reveal the couterparties in negotiations but said the company was very confident of announcing firm contracts in the next few months.

Analysts said the result was in line with forecasts but someinvestors had expected Pacifica's Asian operations to have eaten away more of the groups earnings.

"I think the result has surprised some of the cynics that didn't believe Pacifica would be able to manage their Asian situation," a Melbourne-based analyst said.

Pacific is exposed to Asia through several plants as well as large export contracts with some Asian car makers but the company still managed to eke out a slim operating profit from the region.

The company reported a once-off net loss of A$3.48 million related to the closure of its plastics toolmaking operations and restructuring of several other businesses. Jackson said the company did not expect any further one-off items in the second half.

Much of the groups fortunes are linked to a brake parts plant at Knoxville in Tennessee which it owns in partnership with General Motors Corp unit Delphi Automotive Systems.

The plant is expected to lift the US portion of the groups sales to 28 per cent in calendar 1998 from 13 per cent in 1997 and up to40 per cent in 1999.

Jackson forecast a much stronger second half for the group, citing expected improvements from each of Pacifica's three divisions -- automotive, plastics and construction and industrial products.

Pacifica's car brake product sales in North America were hit by a strike at General Motors in late June but Jackson said the strike had been resolved and he expected General Motors to lift production to counter the effect of the strike.

The company's plastics unit was expected to lift earnings in the second half through lower costs and increased sales of packaging and materials handling products in Australia.

Jackson said the construction and industrial products division should benefit from expansion plans within the Australian minerals industry.

He said forward orders in Australia and China were also improving while market development activities were also being undertaken in the Middle East and Europe.