WRAPUP 1-Nestle trims 2009 outlook as Sara Lee narrows loss
* Nestle H1 organic growth 3.5 pct vs consensus 3.9 pct
* Nestle trims 2009 target, sees faster H2 growth
* Sara Lee Q4 loss narrows to $14 million
* Still considers sale of HPC business
* Nestle shares down over 4 percent, Sara Lee's seen lower
ZURICH, Aug 12 (Reuters) - Nestle (NESN.VX), the world's biggest food group, pared its full-year 2009 outlook after missing forecasts with first-half organic sales growth of 3.5 percent, while Sara Lee (SLE.N) beat quarterly forecasts.
Shares in Switzerland's Nestle dipped on Wednesday as its 3.5 percent growth, which strips out currency effects and acquisitions, came below the average forecast of 3.9 percent in a Reuters poll and 3.8 percent first-quarter growth.
Sara Lee's stock also slipped, as although its loss narrowed to $14 million in its fourth quarter to June 27, it saw weakness in Europe and U.S. food services business, while saying it had seen some interest in buying its household and personal care business.
Nestle, maker of Nescafe coffee, KitKat chocolate bars and Maggi soup, dropped its target for 2009 organic sales growth of "at least approaching 5 percent", saying only that it "expects volume-driven organic growth to accelerate in the second half".
Chief Financial Officer Jim Singh said consensus forecasts for the full-year -- with organic growth seen at 4.3 percent, according to a recent Reuters poll of analysts -- were a good interpretation of Nestle's guidance.
After just 0.5 percent of organic growth came from volume in the first half, he said volume should drive growth more than pricing in the second half, adding Nestle had cut prices in the last quarter and did not see any significant price rises ahead.
"We are seeing a recovery from a tough period between November and March. We expect this trend of improvement to continue in the second half," Singh told analysts.
Sara Lee, which makes its namesake baked goods and Jimmy Dean sausages, was helped by price rises in the U.S. and consumers eating more at home, but competition from private-label brands in Europe cut into its sales.
The Chicago-based group said it was still considering the sale of its Ambi Pur air freshener and Sanex body-wash business after receiving expressions of interest.
Nestle shares were down 4.4 percent at 42.14 Swiss francs by 1325 GMT, dragging on the DJ Stoxx European food and beverage index .SX3P, which was down 1.7 percent.
"Headline is that top line is a bit disappointing, certainly relative to Unilever, but EBIT margin is better, and net income is better," Deutsche Bank analysts wrote in a note.
Results were boosted by Nestle's 52 percent stake in eyecare group Alcon (ACL.N) which provided two-thirds of the margin advance, as the unit saw organic sales growth of 5 percent.
Nestle reported a forecast-beating net profit of 5.1 billion francs, and analysts welcomed its 30 basis point rise in operating margins to 14.1 percent, but were disappointed by its sales growth.
Helvea analyst Andreas von Arx said the strong profitability was similar to peers, but Nestle suffered from weak sales in Europe, and pet food and ice cream were also disappointing.
"On a positive note, water and nutrition show clear signs of improvement in the second quarter," he said.
For fiscal 2010, Sara Lee forecast earnings of 84 cents to 90 cents a share, excluding a 19-cent gain from a contingency payment related to a tobacco business it sold in fiscal 1999.
Analysts on average forecast 90 cents a share, excluding that payment, according to Reuters Estimates.
Sara Lee shares traded at $10.51 in premarket electronic trading, compared with Tuesday's close of $10.80. (Additional reporting by Rupert Pretterklieber and Brad Dorfman, editing by Will Waterman)
