UPDATE 3-Vallourec eyes Q4 sales uptick after Q3 woes

* Q3 net profit down 57 pct, sales down 39 pct

* Shares close up 5.25 after Q3 available early on website

* Says sees gradual increase in sales volumes from Q4

(Adds more comments from conference call)

PARIS, Nov 12 (Reuters) - French seamless tube manufacturer Vallourec (VLLP.PA) said on Thursday it expected a gradual rise in sales volumes from the fourth quarter as it posted a plunge in third-quarter sales and profits.

The group, which supplies the oil and gas, petrochemicals, electricity and automotive sectors, had already said it expected its activity to reach a low in the third quarter. [ID:nLU663503]

"With destocking reaching an end in certain segments, Vallourec anticipates a gradual increase in sales volumes from the fourth quarter onwards," the company said in a statement. "Nevertheless, demand trends remain uncertain," it said.

The group said it saw an impact on margins in the coming quarters from reduced bookings in 2009 in segments where Vallourec had until now benefited from a long backlog, such as in power generation.

"Pricing is stabilising, we see a recovery in more segments" Chief Executive Philippe Crouzet told a conference call, specifying that power generation was not among these segments.

"There's no major rebound, but we're more optimistic than we were some months ago," Crouzet said, adding "trends are improving but the future remains uncertain to say the least."

Margins in the fourth quarter should be more or less stable compared with the fourth quarter, Chief Operating Officer Jean-Pierre Michel said.

Vallourec said it was continuing with existing cost-cutting measures. Michel said he saw full year capital expenditure "close to" but below an earlier forecast of 800 million euros for 2009. There would be some "carry-over" effect into 2010, and capex would be "fairly high" at over 700 million euros next year, he added.

The group said in a statement it would continue with its strategy of targeted acquisitions.

The company's operating income fell 60 percent to 153.3 million euros, representing 15.7 percent of sales.

Net profit was down 57 percent at 105.7 million euros, beating an average forecast of 72 million euros based on seven analysts polled by Reuters. Third-quarter sales were down 39 percent year-on-year at 979.5 million euros, which compared with an average forecast of 893 million euros based on eight analysts' forecasts.

Tenaris (TENR.MI), Vallourec's main competitor, posted a bigger than expected fall in third quarter net profit earlier this month. [ID:nN05145410] (Reporting by Helen Massy-Beresford, Matthias Blamont and Marie Mawad; Editing by Greg Mahlich and Simon Jessop)