UPDATE 2-Novozymes Q1 profit meets fcast, cuts sales outlook

* Novozymes operating profit 403 mln DKK, matches consensus

* Downturn, slowing U.S. bioethanol production hit sales

* Cuts 2009 sales outlook

* Shares fall 5 percent

(Adds CEO, analyst, detail, background, updates share)

COPENHAGEN, April 29 (Reuters) - Danish Novozymes (NZYMb.CO), the world's leading maker of industrial enzymes, reported first-quarter core profit met forecasts, but cut its sales outlook amid slower U.S. bioethanol demand.

Novozymes, whose enzymes for bioethanol account for nearly a sixth of group revenues, raised operating profit to 403 million Danish crowns ($71 million) from a year-ago 372 million, in line with the mean forecast in a Reuters poll.

Group sales grew to 2.13 billion crowns from 2.03 billion, undershooting the market forecast for 2.16 billion.

"Sales... were affected by the global economic downturn and a troubled U.S. bioethanol industry, bringing sales in local currencies on par with last year," Novozymes said on Wednesday.

Novozymes' sales of ethanol enzymes fell 3 percent in local currencies. "The U.S bioethanol industry is in difficulty, and Novozymes is more affected than the competition by customers' capacity reductions in the quarter," it said.

Novozymes cut its 2009 sales outlook to see "slightly positive growth" in local currencies, versus a previous forecast for 3 percent to 8 percent. It cut its forecast in Danish crowns to less than 4 percent, from 8-13 percent.

However, profits and cash flow beat expectations and the 2009 operating margin was now seen at between 19 percent and 20 percent, the firm said.

DETERGENT, FOOD ENZYMES HIT TOO

Novozymes Chief Executive Officer Steen Riisgaard told Reuters the bioethanol enzymes sales downturn was due to a general drop in bioethanol demand, caused by a low gasoline price.

Riisgaard said Novozymes was also directly hit by the collapse of a major client, ethanol maker VeraSun Energy VSUNQ.OB and by the fact its biggest bioethanol enzymes client, leading U.S. producer Poet, was not on full capacity.

The growth in sales of detergent enzymes -- which account for roughly a third of group revenue -- stagnated in the quarter in local currencies. Riisgaard said this was mainly due to consumers moving to budget products containing fewer enzymes.

"There are some indications in Bioethanol and Detergents that growth won't be as strong as we hoped for in 2009," said Rune Dahl, analyst at Sydbank.

Sales of food enzymes, which account for roughly a fourth of grope revenues, shrank 5 percent. Riisgaard said that was mainly attributable to the brewery sector.

Shares in Novozymes were down 5.6 percent by 1136 GMT while the wider market in Copenhagen .OMXC20 was up 0.6 percent.

"The numbers are a mixed treat. It's encouraging they can maintain earnings, but it's not good they get hit on bioethanol in the U.S.," said Jyske Bank analyst Jens Houe Thomsen.

Frans Hoyer, analyst at Proactive Independent Ideas, said Novozymes share were very highly priced. "They are slightly less optimistic on bioethanol, and bioethanol is a key factor as to why the share is valued at more than 20 times P/E."

Novozymes hopes much of the company's future growth will be in enzymes for the new cellulosic bioethanol.

"In 2010, Novozymes expects to enable commercial production of cellulosic bioethanol, subject to current cellulosic bioethanol US subsidies, by providing even more efficient enzymes," Novozymes said on Wednesday.

Experts don't expect the second-generation bioethanol, which would be made of non-edible plants instead of corn, grains or soybeans, to be sold commercially for several years.

The new fuel is expected to release less planet-warming emissions and to be less likely to raise food pries than conventional ethanol.

Novozymes' main rival, Denmark's Danisco DCO.CO, said in March it would have an enzyme for creating second-generation bioethanol ready next year. ($1=5.722 Danish crowns) (Reporting by Anna Ringstrom, additional reporting by Martin Dahl; editing by Simon Jessop and Mike Nesbit)