UPDATE 4-Austria steelmaker urges no "hysteria" over economy

* Fiscal Q1 core earnings 203.3 mln eur vs poll 196 mln

* Tells investors not to worry about economic outlook

* Shares up 0.9 pct, in line with European peers

(Adds CEO quotes)

By Sylvia Westall

VIENNA, Aug 19 (Reuters) - Steel group Voestalpine (VOES.VI) called for less "hysteria" about the global economic outlook on Thursday after quarterly earnings beat estimates thanks to rising demand and cost-cutting.

The maker of high-quality steel used in cars, railways and pipelines said there was no reason to be too worried about the global outlook except for some weakness in the United States, and ruled out the possibility of a double-dip recession.

"Traditional seasonal fluctuations should be viewed as such and not assumed to be harbingers of the next recession," the Austrian company said.

"More realism and less hysteria would be desirable."

Chief Executive Wolfgang Eder, also president of steel body Eurofer, said that his company will recover from the slump and post full-year revenue in the double-digit billion euro range.

First-quarter earnings before interest and tax (EBIT) swung to a profit of 203.3 million euros ($260.5 million) from a loss of 26.3 million euros last year.

Sales in the three months to end-June rose 22 percent to 2.56 billion euros. Analysts in a Reuters poll had predicted 196 million euros EBIT and 2.44 billion euros sales. [ID:nLDE67G0U5]

Sounding less doubtful than three months ago, the group said it saw a good recovery in almost all key markets and industries and was close to pre-crisis demand and capacity levels.

"We do not see signs of weakness in the coming quarters, and of course no slumps, rather a solid development," Eder said.

It expects full-year EBIT to "substantially exceed" last year's and will pass on high input costs to customers.

Voestalpine said the biggest rise in volumes came in its Profilform division -- which makes steel tubes and steel units like crash barriers -- and its stainless steel business, which supplies welders, tool and turbine makers.

Both core units had been hit badly during the downturn.

Its shares were up 0.9 percent by 1051 GMT, in line with the STOXX Europe 600 Basic Resources index .SXPP.

The overall picture is mixed for European steelmakers who are expected to reap rewards in the short term from restocking, auto demand and higher prices but may suffer later in the year from high raw materials costs and lower demand. [ID:nLDE66E0BK]

Eder said government austerity measures may hurt the building industry for several years but this not a problem for Voestalpine which counts the sector as only its fifth-most important customer.

But it is a serious issue for the wider steel sector which relies heavily on the building industry, he said, with big infrastructure projects such as roads being delayed in growing numbers.

ASIAN DEMAND FOR EXPENSIVE CARS

High Asian demand for premium cars helped Voestalpine's automotive division boost revenue 24 percent. The scrapping of government incentive programmes did not seem to be having a severe effect on the smaller car market, it said.

European carmakers published strong quarterly results in July as swelling underlying demand offset the end of scrapping schemes. [ID:nLDE66M0UA] [ID:nLDE6711lW] [ID:nLDE66M1BL]

Voestalpine, which produced 6 million tonnes of crude steel last year, said it expected that spot prices would rise again in most European countries after a seasonal lull.

"The prices of coal and ore...have peaked, at least for the time being. The economic limits of demand and new mining capacities have demonstrated their impact," it said.

"Therefore, the steel industry can look forward to the development of the situation with somewhat greater equanimity than before."

ThyssenKrupp (TKAG.DE), Germany's top steelmaker, shrugged off high input prices and the threat of Chinese competition, and raised its profit target last week as growth in its home market helped results beat third-quarter estimates. [ID:nLDE6791YR] (Editing by Michael Shields and Erica Billingham) ($1=.7805 Euro)