Keller sees 2008 results similar to last year

LONDON (Reuters) - Ground engineer Keller (KLR.L) posted a 19 percent rise in first-half profit and said full-year results would be broadly in line with 2007 amid tough trading in some western European and U.S. residential markets.

The firm, which prepares the ground for major construction projects, said on Monday that profit before tax from continuing operations was 54.2 million pounds in the six months to June 30.

"Looking across the group, we expect to see a continuation of the positive momentum in our high growth markets and some moderate tightening in certain of our Western European markets as the year progresses," it said in a trading update.

"Whilst currently the U.S. non-residential construction market remains resilient, the medium term prospects for our US markets, particularly the commercial sector, remain unclear."

Keller is currently expected to report a full-year pretax profit of 100.8 million pounds, down from 103.2 million the year before, according to the median forecast of six analysts polled by Reuters Estimates.

Keller shares have almost halved in value since October amid signs of a deepening downturn in U.S. and UK construction markets. However, the stock has outperformed the UK construction and materials sector .FTASX2350 by 28 percent this year and closed on Friday at 648 pence, valuing the business at about 434 million pounds.

(Reporting by Mark Potter; Editing by David Cowell)