UPDATE 1-Valeo to raise H2 production; posts Q3 profit

* Q3 net income 4 million euros

* Operating margin 3.6 pct of sales

* Ups H2 automotive production forecast

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PARIS, Oct 20 (Reuters) - French car parts maker Valeo (VLOF.PA) raised its production forecast for the second half after posting third-quarter net income of 4 million euros ($6 million), after three consecutive quarterly losses.

Auto suppliers have felt the benefits from scrapping incentive schemes designed to boost car sales after the industry was hit by an unprecedented crisis.

The group said on Tuesday it was targeting net income of "near break-even point" for the second half and was also increasing its automotive production forecast for the period.

The group is also aiming for cash consumption not to exceed 100 million euros in the year as a whole. It had previously been targeting around 200 million euros, after restructuring costs.

Valeo said it anticipated automotive production would continue to recover in the fourth quarter of 2009, with all regions worldwide showing an increase except North America.

"Overall global automotive output in the second half should be slightly higher than that of the second half 2008, thanks in particular to the sustained effect of scrapping programmes through the end of the year and to the vitality of the main emerging markets," Valeo said in a statement.

Fellow French car parts maker Faurecia (EPED.PA), which is around 70 percent owned by carmaker PSA Peugeot Citroen (PEUP.PA), earlier on Tuesday posted a 21 percent drop in quarterly sales but raised its outlook for the second half. [ID:nLK412242] (Reporting by Helen Massy-Beresford; Editing by David Holmes) ($1=.6678 Euro)