HK's Li & Fung profit more than halves in first half

HONG KONG, Aug 25 (Reuters) - Global exporter Li & Fung Ltd on Thursday said its first-half profit fell 51 percent as price deflation and competition affected its main U.S. market, while the weak Chinese currency continued to hit its trading business.

The Hong Kong-based company, which grew to prominence by making clothing and toys for Western retailers, said its net profit for January-June plunged to $72 million from $149 million a year earlier.

The exporter, which supplies to firms such as Kohl's Corp and Wal-Mart Stores Inc, said core operating profit fell 14 percent to $156 million from $182 million. Revenue shrank to $8.07 billion from $8.63 billion a year ago.

(Reporting by Donny Kwok; Additional reporting by Paul Carsten; Editing by Stephen Coates and Sherry Jacob-Phillips)