UPDATE 1-Qualceram warns on Irish property slowdown impact

(Adds details, background, updates shares)

DUBLIN, Oct 18 (Reuters) - Ireland's Qualceram Shires (QLC.I) warned on Thursday that 2007 results would miss earlier guidance due to the slowing Irish property market, knocking more than 20 percent off shares in the bathroom suite maker.

"Taking into account the financial performance of the group for the month of September and the anticipated continuing trend into October and beyond, Qualceram has reduced its view of the full year outcome," the company said in a statement.

Qualceram (QLC.L), which also pointed to higher interest rates as a concern, said it expected 2007 group turnover to be 8 to 9 percent below current market expectations and saw full-year pretax profit at about 2.4 million euros ($3.4 million).

That would be only slightly higher than the 2.1 million euro profit achieved in the first six months of this year and down from a 3.9 million euro profit before tax for the full-year in 2006.

"We continue to operate in the very challenging environment of increased competition, energy costs and interest rates, aligned with a noticeable slowdown in the Irish housing market," Chief Executive John O'Loughlin said.

"Our balance sheet remains strong and we remain cash generative," he added.

The company, which owns the brands Qualceram, Shires, Selecta, Trent and Shaws of Darwen, said it planned to reduce costs further in the coming months.

"The fundamentals of demographics and employment remain strong in the Irish housing market despite the current downturn in demand for new houses," Qualceram said. "The rise in interest rates appears to have peaked in the UK and euro zone."

Shares in Qualceram were down 23.1 percent at 1.00 euro in Dublin by 1242 GMT versus a 1.6 percent weaker Irish market .ISEQ.