UPDATE 1-Andritz's Q3 net profit down but beats estimates

* Third-quarter net profit 24 pct down at 27 mln euros

* Pulp and paper business tough, hydro stronger

* Reiterates expects 2009 net profit, sales to decline

(Adds further details)

VIENNA, Nov 6 (Reuters) - Weak demand from the pulp and paper industry dragged on third-quarter profits at Austria's Andritz (ANDR.VI), though not as much as expected,and the machinery maker said it still expects lower full-year earnings.

Andritz, which makes machinery for steel, paper and pulp producers as well as for hydropower plants, said net profit fell 24 percent to 27.1 million euros ($40.2 million) in the three months to September. Analysts in a Reuters poll had on average predicted a net profit of 24 million euros. [ID:nL4148964].

Sales, down 15 percent at 756 million euros, and order intake, up 9 percent at 842 million, were both higher than expected.

"In the hydro business area we expect the good investment activity to continue. In the other business areas we see stabilized project activity at current levels," Chief Executive Wolfgang Leitner said in a statement.

Pulp and paper and the hydro units are Andritz's core businesses, bringing in 37 percent and 33 percent of revenues respectively in 2008. The hydro business fared better in the first three quarters of the year.

Andritz reiterated it expected 2009 net income to fall and full-year sales to drop about 15 percent due to the difficult economic environment.

Andritz's shares have more than doubled in value since the start of the year, outperforming the DJ Stoxx European industrial goods and services sector index .SXNP which has risen some 25 percent. ($1=.6734 euros) (Reporting by Sylvia Westall; Editing by Greg Mahlich)