UPDATE 3-Wienerberger Q3 misses forecasts, E.Europe weighs

* EBITDA down 40 pct at 76.9 mln eur vs poll avg 84 mln eur

* Biggest declines in eastern Europe, U.S.

* Sees FY EBITDA at around 200 mln eur, below expectations

* Expects 2010 cashflow, earnings to rise significantly

* Shares down 6.5 percent as improvement hopes dashed

(Adds analyst, details)

By Boris Groendahl

VIENNA, Nov 6 (Reuters) - World No.1 brickmaker Wienerberger (WBSV.VI) missed forecasts for third-quarter core earnings and warned full-year results would also fall short as business in emerging Europe and the United States showed no signs of pickup.

Wienerberger, highly geared to the contracting residential construction market, took its biggest hit in central and eastern Europe in the third quarter, where core earnings almost halved, and in the United States, where it turned negative.

Its shares dropped 6.5 percent to 12.21 euros by 0945 GMT, the lowest in nearly three months. Analysts had been hoping Wienerberger might have turned a corner in the three months to September, but Chief Executive Heimo Scheuch remained downbeat.

"Although volume declines were more moderate during the summer, September remained below expectations - especially in the USA and Eastern Europe," Scheuch said in a statement.

"There are no signs that the downturn in the operating business will soon bottom out," he said.

The group said third-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 40 percent to 76.9 million euros ($114 million).

Analysts had on average expected a 35 percent fall in EBITDA. [ID:nLT372521]

"No significant improvement in earnings is expected by the year-end 2009," Citi analyst Aynsley Lammin wrote in a note to clients. She added that Wienerberger appeared more optimistic on 2010 but that Eastern Europe, badly hit by the crisis, "remains a key call".

Wienerberger's central Europe and Germany business brings in about half of the group's revenue while the United States segment makes up around 10 percent of sales.

OUTLOOK GRIM

Scheuch, who is cutting costs and closing factories, and raised fresh cash in a rights issue in September to reduce Wienerberger's leverage, said EBITDA in the second half would be on roughly the same level as the first half of the year.

This implies full-year EBITDA of around 200 million euros -- much less than the 240 million euros average estimate according to Thomson Reuters I/B/E/S.

"It is too early to speak of recovery from today's perspective because the economic environment is still difficult," Scheuch said.

Wienerberger's reduced its net debt by 45 percent between June and September. It stood at 540.5 million euros by the end of the third quarter.

The company has suffered the full force of the housing collapse, especially in Britain, where Scheuch said business was improving in the United States and emerging Europe.

Unlike rivals including Holcim (HOLN.VX) and HeidelbergCement (HEIG.DE), it has not benefitted from stimulus measures as it has little exposure to civil engineering.

Scheuch, who took the helm on Aug. 1 after long-time boss Wolfgang Reithofer retired, said he expected cash flow and earnings to rise significantly in 2010. (Additional reporting by Sylvia Westall; Editing by Jon Loades-Carter) ($1=.6734 Euro)