CORRECTED - UPDATE 1-Kuehne & Nagel Q3 profit slips 10 pct

(Corrects to show Kuehne&Nagel shares have risen this year)

* Q3 profit falls 10 pct to 130 mln Sfr

* Average estimate in Reuters poll was 117 mln Sfr

* Says seen first signs of recovery in seafreight in Q3

ZURICH, Oct 20 (Reuters) - Swiss logistics group Kuehne & Nagel (KNIN.VX) posted a 10 percent drop in third-quarter net profit and said it had seen the first signs of recovery in its seafreight unit during the quarter.

Net profit slipped to 130 million Swiss francs ($128.3 million) for the quarter, ahead of the average estimate of 117 million francs in a Reuters poll of 11 analysts. [ID:nLF349731]

"During the first half of the year, the international seafreight market was characterised by significant volume declines; the third quarter, however, saw the first signs of recovery," the group said in a statement.

"Leveraging its broad geographic reach and its value-adding product portfolio, Kuehne + Nagel was able to expand market shares in almost all trade lanes," it said.

Kuehne & Nagel as well as rivals Panalpina (PWTN.S) and Deutsche Bahn's Schenker [DBN.UL] saw demand for logistics services crumble during the downturn as retailers stopped ordering new stocks and manufacturers curbed their production of goods.

The WTO expects world trade to shrink 10 percent this year but there have been signs the trade contraction has started to bottom out.

Kuehne & Nagel's shares have risen some 40 percent this year, while the Swiss mid-cap index.SMIM has risen 28 percent and Panalpina's shares have risen around 50 percent.

Kuehne & Nagel trades at around 20 times 2010 earnings, at a premium to Panalpina at around 18 times. ($1=1.013 Swiss Franc) (Reporting by Katie Reid)