UPDATE 1-William Demant raises H2 sales, EBIT outlook

* Raises H2 outlook to see higher sales, EBIT than in H1

* Says hearing aid market continued to stabilise in Q3

* Shares up 3.9 percent in early trade

(Adds detail, share price)

COPENHAGEN, Nov 16 (Reuters) - Danish hearing aid maker William Demant (WDH.CO) on Monday raised its forecast for sales and operating profits in the second half of this year on the back of stabilising markets.

"As a consequence of trends in the third quarter, the group now expects revenues and operating profits (EBIT) in the second half-year of 2009 to exceed the levels realised in the first half-year," the firm said in a quarterly update, which did not include a profit and loss statement.

"Thus, we expect to see significant growth rates in revenues and operating profits compared with the second half of 2008."

William Demant's previous guidance, given in August, had been for second-half revenues and operating profits in line with those in the first half. [ID:nLJ405613]

The firm said it still saw revenues from its wholesale activities exceeding market growth by 2-4 percentage points this year as its earlier impression of more stable market conditions was confirmed in the third quarter.

In the hearing aid market, trends prevailing in the first half-year continued into the third quarter.

It said third-quarter hearing aid sales growth was significantly higher than in the first half of the year.

"Compared with the same period last year, growth in the hearing aid business in the third quarter was driven by increased volume sales as well as a rise in average selling prices in our wholesale activities," it said.

"This is, among other factors, due to a solid rise in sales to the independent retailers.

William Demant is fighting with Germany's Siemens (SIEGn.DE) for the No.2 position on the global hearing aid market behind Sitzerland's Sonova (SOON.VX).

Sonova last week reported a 22 percent rise in first-half net profit, helped by recent product launches, and increased its full-year outlook. [ID:nLA581159]

At 0821 GMT, William Demnat shares were up 3.9 percent at 383.5 Danish crowns. (Reporting by Anna Ringstrom and Teis Jensen)