INTERVIEW-Thai KCE Electronics says returning to black in '09

* To return to black in 2009 with 100 mln baht profit

* Sees profit of 100 mln baht per qtr in 2010

* Rehiring workers, operating a nearly full capacity

BANGKOK, Oct 13 - Thailand's KCE Electronics Pcl expects to return to profit this year on the back of recovering demand in the global automotive industry, a senior company official said.

The printed-circuit-board maker, which counts Germany's Continental AG and Japan's Sony Corp as major clients, was increasing its workforce as clients place more orders, Assistant Managing Director Pithan Ongkosit told Reuters in an interview.

The company expects a net profit of more than 100 million baht ($3 million) this year, above analysts' forecasts, on higher sales and product margins, Pithan said. Analysts polled by Thomson Reuters I/B/E/S forecast on average a net profit of 25 million baht for this year.

"Our third-quarter earnings will be a surprise and the fourth-quarter earnings will be increasing. It will turn our full-year earnings into the black," Pithan said.

He said according to conservative projections, the company expects to earn 100 million baht per quarter in the third and fourth quarters this year, recovering from first-half losses to generate a full-year 100 million baht profit.

He expects to maintain that momentum of 100 million baht per quarter profits over next year.

RIDING A RECOVERY

Export-oriented KCE sells 60 percent of its output to the automotive industry, largely to Europe and the United States. Its two domestic plants now run at nearly full capacity.

KCE suffered a net loss of 399 million baht in 2008 on an 8.3 percent drop in revenue to 7.67 billion baht ($230 million), squeezed by the global recession and rising costs of raw materials such as copper.

The drop in revenue came despite a prediction by the company in April 2008 of a 25 percent rise in annual sales.

It had a 114 million baht net loss in the first-half of this year with buyers more cautious on placing new orders.

Pithan expected dollar-based revenues of $160 million this year, rising to $210 million next year. Its 2008 revenue was $230 million. Gross margins would be more than 20 percent this year and next, in part due to lower costs, he added.

"The auto sector is still attractive. There's no price pressure in this sector even in a downturn. It will continue to be our focus," he said.

Like other electronic exporters, KCE has increased its workforce in recent months to about 4,500, after a cut of more than 800 jobs last year, he said.

KCE shares, valued $56 million, have risen 3.5 times this year, trading on Tuesday at 4.14 baht. ($1=33.30 Baht)