UPDATE 3-Autogrill cuts 2008 EBITDA, sales forecasts

(Adds quotes on forecast cut, details on Aldeasa, Spain)

By Marie-Louise Gumuchian and Paul Sandler

MILAN/LONDON, July 16 (Reuters) - Autogrill (AGL.MI), the world's largest manager of highway and airport restaurants, cut its 2008 core profit forecast by about 4.8 percent to 600 million euros as restructuring costs and a strong euro weighed.

The Italian company, which had a previous estimate of about 630 million euros ($1 billion), said on Wednesday it expects restructuring costs of 17 million euros this year, in a statement outlining its 2008-2010 business plan.

It also forecast consolidated sales of 5.78 billion euros, down from a previous 2008 forecast of about 5.9 billion euros.

"Our short-term objective is to reduce net financial indebtedness without compromising development and investments," Chief Executive Gianmario Tondato Da Ruos said in the statement.

Autogrill, which is also the world's top airport retailer after buying World Duty Free (WDF) and full control of Spanish-based Aldeasa, wants to reduce its net debt, at 2.13 billion euros as of June 30, and achieve a debt/EBITDA ratio of 2.5 times by 2010 through "strong cash flow generation".

"The business is highly cash generative, so we are creating an area for further growth," Chief Financial Officer Alberto De Vecchi said at an investor day in London, referring to WDF which he said was performing above expectations while Aldeasa was falling short of expectations.

"The focus in 2008-2010 is the de-leveraging, leaving us ready after 2010 to pursue further opportunities if available."

Autogrill shares, which fell after the statement came out, were up 1.94 percent to 7.25 euros at 1347 GMT as other leading Milan shares .SPMIB were down 0.97 percent.

FOREIGN EXCHANGE EFFECT

Autogrill expects average annual earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 11.1 percent to 2010 and average annual growth of 6.9 percent for consolidated revenues.

For 2009, EBITDA is seen at 680 million euros with consolidated revenue of 6.23 billion. In 2010, it is expected to reach 740 million euros and revenue 6.6 billion euros.

The new guidance is based on euro exchange rates of $1.5508 and 0.786 pounds. Previous 2008 forecasts were based on a euro rate of $1.50.

"Approximately 11 million (of the reduction in the EBITDA forecast) is pure foreign exchange effect," De Vecchi said. "And we have a higher incidence of restructuring costs."