UPDATE 1-MA Industries moves to Q3 loss, sees growth in 2010

* Q3 loss $17.5 mln vs forecast $18 mln

* Sales drop 32 percent; Brazil sales down 51 pct

* Company sees return to growth in 2010

* Shares fall 1.3 percent

(Adds details, CEO/analyst comments, share reaction)

By Steven Scheer

JERUSALEM, Nov 12 (Reuters) - MA Industries MAIN.TA, the world's largest generic agrochemicals maker, swung to a net loss in the third quarter due to the global slowdown and deteriorating results from Brazil, the company said.

But Israel-based MA, a unit of Koor Industries (KOR.TA), said it expected to return to growth in 2010.

MA, also known as Makhteshim Agan, posted a loss of $17.5 million, or 4 cents per share, compared with profit of $50.6 million, or 11.5 cents a share, a year earlier.

Revenue slid to $436 million from $640.1 million.

MA was forecast to record a net loss of $18 million, or 4 cents a share, on revenue of $435 million, according to the average estimate of nine analysts polled by Reuters.

MA last month said it would post a third-quarter net loss of $15 million to $25 million and revenue of $425 million to $440 million.

"The third quarter was as grim as predicted," Citi analyst Andrew Benson wrote in a note to clients.

Shares of MA were down 1.3 percent at 17.77 shekels in morning trade in Tel Aviv compared with declines of 0.3 percent on the broader bourse.

MA said it suffered a 50.6 percent drop in sales to South America to $101.8 million, noting it was due to one-time factors in Brazil. Sales to Europe fell nearly 29 percent as a result of dry weather conditions in Northern Europe, it said.

Avraham Bigger, MA's chairman and chief executive, said the quarter was impacted by one-time factors that are expected to moderate in 2010, "enabling the company to return to its growth trajectory and improve its profitability".

He said high inventories in Brazil, a decrease in selling prices of some products, negative currency effects and growers' caution have led to a decrease in demand and profitability.

He added the decline in inventory levels in distribution channels, easing of credit pressure and continued investment in expansion will allow MA to attain growth and improved profitability in 2010.

Benson, who rates MA a "hold/high risk" with a target of 22 shekels, said he expects 2010 to be a good year in general for crop chemical demand.

"But MA will need to work hard to turn around Brazil if it is to see the benefits of improved market conditions," he said.

"MA needs to reassess some aspects of its business model, in our view. It needs tighter control of costs and stocks and better regulatory compliance." ($1=3.75 shekels) (Editing by Mike Nesbit)