UPDATE 2-DP World sees tough Q4; CFO to join parent firm

* DP World sees challenging Q4

* DP World CFO to step down in December

* 2009 results seen in line with market expectations

(Adds details, CEO, CFO quotes, analyst comment)

By Raissa Kasolowsky

DUBAI, Oct 27 (Reuters) - Port operator DP World (DPW.DI) reported a 6-percent fall in third-quarter container volumes on Tuesday and said its 2009 results would be in line with market expectations despite a challenging fourth quarter ahead.

The firm also said its chief financial officer would step down at its December board meeting and join state-linked parent company Dubai World as group CFO, adding that no replacement had yet been found. [ID:nLR395474]

The decline in container volumes meant a 8 percent fall year on year for the nine months to Sept. 30, DP World said in a statement on the Nasdaq Dubai exchange website.

"The final quarter of 2009 will continue to present challenges with tough prior year comparators, particularly in the UAE region where we also anticipate a continuation of significant non-container revenue declines," Chief Executive Mohammad Sharaf said in the statement.

Sharaf said on a conference call that the company was "comfortable" with analyst forecasts of earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.1 billion for the full year.

Non-container revenue would decline around 30 percent in 2009, Sharaf said.

The international shipping industry has been hard hit by the global economic downturn, largely due to overcapacity caused by a construction boom that took place before the slump began.

"Pricing pressures continue...because of extra capacity within the industry. Until these problems are resolved we are going to see that," Sharaf said.

"We are seeing some stability coming back."

LONG-TERM COST CUTS

DP World was now taking a more long-term approach to cost cutting, Chief Financial Officer Yuvraj Narayan said.

"What you saw in the beginning was short-term cost cutting..now we are looking at longer-term cost-cutting," he said, adding the firm would have a clearer idea of any intiatives by the end of the year.

DP World said in January it was reviewing all expansion projects, cutting costs and freezing recruitment in view of the anticipated slowdown in 2009.

Narayan said on Tuesday DP World had cut around 1,300 jobs as part of previously announced 12,000 job cuts at Dubai World.

The company said volumes in the third quarter in the UAE region were in line with the same period last year, reflecting continued resilience in the Middle East, Indian and African regions.

"We are encouraged that trading in the third quarter of this year has seen volumes begin to stabilise after the significant declines of the first half," Sharaf said.

DP World is owned by the Dubai government-linked conglomerate Dubai World, whose real estate unit, Nakheel, has been the subject of much concern over how it would meet debt obligations. Dubai World said in July it had liabilities close to $60 billion.

"The numbers are in line with our expectations and represent an improvement on the first-half volume declines, highlighting the generally stronger trading conditions," Ian Munro, head of research at MAC Capital Advisors, said in a research note.

MAC Capital Advisors sees DP World posting a 2009 net profit of $323.3 million, a fall of 39 percent.

Earnings are expected to jump 43 percent in 2010 to $464.5 million, Munro wrote.

At 1312 GMT, shares in DP World on Nasdaq Dubai were down 1.8 percent at $0.54 per share. At its IPO in November 2007, the stock listed at $1.30 per share.

(Reporting by Raissa Kasolowsky; Editing by Jason Neely)