UPDATE 1-Andritz Q4 orders rise 40 pct, missing expectations

* Q4 orders up 40 pct to 1.13 bln euros

* Net income down 5 pct to 76 mln euros

* Dividend for 2012 up 10 cents to 1.20 euros (Adds details, background)

VIENNA, March 1 (Reuters) - Austrian engineering group Andritz posted a 40 percent jump in fourth-quarter orders, missing expectations as order intake in its hydro and pulp and paper units fell.

Andritz said on Friday it expected an increase in sales and net income this year, partly because of the acquisition of German peer Schuler, of which it now owns more than 90 percent.

"We expect no significant recovery of the global economy also in this year. However, we still see solid development with good project activity in the markets served by Andritz," chief executive Wolfgang Leitner said in a statement.

Order intake was 1.13 billion euros ($1.48 billion) in the quarter, compared with the 1.19 billion average estimate in a Reuters poll, while net income fell 5 percent to 76 million euros, also below expectations.

The company said it would raise its dividend for 2012 by 10 cents to 1.20 euros.

Andritz supplies plants, equipment and services for hydro power stations, the pulp and paper and steel industries, and for the production of animal feed and biomass pellets. It also sells technology to separate solids and liquids ($1 = 0.7649 euro) (Reporting by Georgina Prodhan; Editing by Dan Lalor)