UPDATE 1-Praktiker says German business picks up

* German business to perform stronger than foreign business

* Still foregoes 2009 outlook

* Hornbach expects 2009/10 sales to rise

* Praktiker shares rise more than 9 pct

(Adds detail and share price)

FRANKFURT, May 27 (Reuters) - German home improvement chain Praktiker (PRAG.DE) said on Wednesday that business in its home market was improving and would likely perform better this year than its international operations.

April and May improved from the first quarter, Chief Executive Wolfgang Werner told the company's annual shareholder meeting.

Its German business would probably be more stable this year than its international operations, contributing more strongly to sales and earnings than in previous years, Werner said.

Praktiker, which made about two-thirds of its operating profit outside of Germany last year, struggled with weaker sales in the first quarter as cold weather and the global recession spoiled consumers' appetite for DIY work and gardening.

Forward-looking indicators in recent weeks have suggested the pace of the downturn in Europe's biggest economy -- which the government has forecast will cause the economy to shrink by a record 6 percent this year -- has eased since the first quarter. [ID:nLP197790] [ID:nLP719441]

German rival Hornbach (HBHG_p.DE), in which Europe's largest home improvement retailer Kingfisher holds a minority stake, said it expects 2009/10 sales to rise by a low- to mid-single-digit rate.

Praktiker shares rose nearly 10 percent and were up 7.3 percent at 7.04 euros by 0935 GMT, outperforming a 1.4 percent gain in Germany's mid-cap index .MDAXI.

Werner again refrained from giving an outlook for 2009, but said Germany's second-largest home improvement chain after Tengelmann's OBI would still be able to generate positive operating earnings this year despite falling sales.

The group's financial position was solid and Praktiker had has no need for refinancing in the next two and a half years, Werner added. (Reporting by Eva Kuehnen)