* 2010 EBITA 222.5 million euros vs forecast 207 million
* Net profit 113 million euros, up 21.5 percent
* Proposes dividend of 1.50 euros per share vs 1.32 in 2009
* Chief Financial Officer to retire as of Sept. 1
(Adds analyst comment, detail, background)
By Ivana Sekularac
AMSTERDAM, Feb 10 (Reuters) - Dutch food group Nutreco gave no earnings outlook when it reported better-than-expected 2010 operating profit on Thursday, adding to uncertainty over the impact of raw materials price rises in 2011.
Nutreco said 2010 underlying earnings before interest, tax and amortisation (EBITA) rose 27 percent to 222.5 million euros ($304 million). The average expectation for underlying EBITA was 207 million euros.
"The most striking thing is that the company did not give the outlook and it might be interpreted by the market as a sign of uncertainty because of rising prices of raw materials," ABN AMRO analyst Maarten Bakker said. "That will weigh on the sentiment."
Nutreco has passed on higher prices to farmers in 2010, boosting its earnings, but concerns about rising raw materials prices have heightened in recent weeks, hurting its shares.
Based on Wednesday's close, Nutreco's shares have fallen 11 percent to 53.50 euros from an all-time high of 60.73 euros on Dec. 16.
HIGHER COSTS
Nutreco, the world's fifth-largest compound feed producer, competes with Provimi, Norvite Animal Nutrition Company, Cargill , Alltech, DSM and Danisco, which has been agreed to be bought by DuPont.
The company reported net profit of 113 million euros, up 21.5 percent, but below the average forecast of 128 million on a 9.5 percent rise in sales to 4.94 billion euros.
"Operating earnings are in line with expectations, but higher restructuring charges and higher financial expenses result in net profit some 10 percent below our estimate," said Richard Withagen, an analyst with SNS Securities.
"Overall slightly disappointing," he added.
The company, which produces animal and fish feed and is a major poultry processor, said in its compound feed business it had been able to pass on raw materials price rises to customers.
In its fish feed business, Nutreco said it benefitted from improved volumes in Norway and a recovering volumes in Chile, a region hit by fish disease problems in recent years.
The company also announced changes in its management board, saying Chief Financial Officer Cees van Rijn will retire as of Sept. 1, 2011 and be replaced by Gosse Boon.
It also announced the merger of the agriculture and specialties divisions into a new animal nutrition unit, cutting the number of its board members to four from five. (Additional reporting by Aaron Gray-Block; Editing by Jon Loades-Carter and Hans Peters) ($1 = 0.7308 euro)