UPDATE 1-Nutreco keeps 2011 outlook, Q3 sales rise

Thu Oct 20, 2011 1:37am EDT

* Q3 sales 1.535 bln euros vs 1.53 bln euros in poll

* Reiterates 2011 EBITA forecast of 230 mln euros

* Expects excellent H2 results for fish feed

* Sees H211 in line, or better than H210

By Aaron Gray-Block

AMSTERDAM, Oct 20 (Reuters) - Dutch food group Nutreco reported on Thursday a 15 percent rise in third quarter sales as the group successfully passed on higher grain prices to farmers and kept its full-year outlook.

Nutreco, which produces animal and fish feed and is a major poultry processor, has consistently been able to pass on higher costs for crops such as grain, corn and soya bean and is also benefiting from strong sales at its fish feed business.

"In the second half year we expect excellent results in Fish feed and the total of our other activities to be in line with last year or slightly higher," the firm said in a statement on Thursday.

CEO Dekker said the company would provide a strategy update on November 16.

Nutreco, which competes with Norvite Animal Nutrition Company, Cargill , Altech and DSM , in August missed out on buying rival Provimi which was acquired by Cargill, and is now on the look-out for smaller bolt-on deals.

The company reiterated that it expects full-year earnings before interest, tax and amortisation (EBITA) to be around 230 million euros, up about 3 percent from 2010.

It reported a 14.6 percent rise in third quarter sales to 1.535 billion euros, bringing its nine-month tally to 4.108 billion.

Analysts in a poll commissioned by Reuters had forecast on average third quarter sales of 1.53 billion euros.

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