UPDATE 2-Geberit gives gloomy construction outlook

* Q1 net profit 93.5 mln Swiss francs, vs forecast 95 mln

* Aiming for mid-term margin goal in 2009

* Shares fall 1.3 percent

(Adds details, shares, analyst comment)

ZURICH, April 29 (Reuters) - Swiss sanitary equipment maker Geberit (GEBN.VX) gave a gloomy outlook for the construction industry after first-quarter net profit dropped 28 percent as the recession hit building activity.

Geberit, which makes toilet flushing systems, said on Wednesday net profit fell to 93.5 million Swiss francs ($81 million), just short of the average estimate of 95 million in a Reuters poll.

"The decline in the building ... industry will continue. Construction volumes are regressing significantly in most of the geographical markets that are important to Geberit. No recovery can be realistically expected before 2011," the company said in a statement.

By 0952 GMT, shares in the group had fallen 1.3 percent to 122.40 Swiss francs, underperforming a 0.6 percent rise in the Swiss market .SLI.

Sales in Europe, Geberit's main market, fell 8 percent in local currencies, while they tumbled 18 percent in America. Chief Executive Albert Baehny said the group was not seeing any signs the American market had reached the bottom.

"Figures are falling short of our and consensus expectations," said Vontobel analyst Patrick Laager.

"From a regional perspective, figures ... confirm that the economic crisis has reached all regions in which Geberit operates."

Geberit is aiming to reach its mid-term earnings before interest, tax, depreciation and amortisation (EBITDA) margin target of between 23 and 25 percent in 2009, Baehny said on a conference call, declining to give a full-year sales forecast.

The group's EBITDA margin ticked down to 26.5 percent in the first quarter from 28.9 percent in the year-ago period.

"This confirms that Geberit is benefiting from strong pricing power in its niche markets despite the crisis," Vontobel's Laager said.

Operating profit dropped 24 percent to 126 million francs, while sales fell 14 percent to 552 million, the group said.

(Reporting by Katie Reid; editing by Elaine Hardcastle, Dan Lalor, John Stonestreet)

($1 = 1.156 Swiss francs)