UPDATE 1-Pirelli H1 swings to profit, sees lower debt

* Net profit just above analysts' expectations

* Improves year-end net debt forecast

* Shares close up 1.48 percent

(Adds details, background, shares)

MILAN, July 29 (Reuters) - Italy's Pirelli & C (PECI.MI) swung to a net profit in the first half, boosted by an improvement in operations in the second quarter from restructuring, and improved its net debt forecast.

First half net profit was 6.3 million euros, against a loss of 36.2 million a year earlier, while operating profit fell 43 percent to 101 million euros, it said in a statement.

Both were just above analysts' expectations.

"The Pirelli group has concluded the second quarter of 2009 with a progessive improvement in overall operating results compared to the first quarter, above all thanks to restructuring launched last year," it said. Weakness in the auto sector has depressed results at Pirelli's tyre operations while its unit Pirelli & C Real Estate (PCRE.MI) posted a net loss of 42.3 million euros in the first half.

In the first half, sales at Pirelli & C were 2.138 billion euros, down from 2.455 billion euros a year earlier.

Three analysts had forecast net profit would be between 1 and 5 million euros, operating profit between 91-98 million euros and sales from 2.127 billion to 2.146 billion.

Looking forward Pirelli said it improved its year-end net debt forecast to 800 million euros, from a previous 1 billion euros target, citing the success of a 400 million euros capital increase at Pirelli RE.

The company reiterated its 4.3 billion euros full year sales forecast and 4.5-5 percent target for operating margin.

Pirelli shares closed up 1.48 percent at 0.2745 euros.

(Writing by Nigel Tutt; Editing by David Cowell)