* Q3 EBITA 811 crowns vs forecast 613 crowns
* Underlying momentum "more positive", few growth signals
* Shares up 1.6 percent (Adds details, company and analysts comments, share price)
By Aasa Christine Stoltz
OSLO, Oct 30 (Reuters) - Norwegian food-to-metals group Orkla said it saw signs of stabilising markets, but still few signals of growth, as it reported a smaller-than-forecast drop in third-quarter core earnings on Friday.
Orkla, which makes products from frozen pizza to aluminium parts, said restructuring and cost-cutting programmes put in place this year had improved its cost position and cash flow.
"We see clear signs of stabilisation in important markets, but there are still few strong growth signals," said Chief Executive Dag J. Opedal. He said underlying momentum was "more positive."
Earnings before interest, tax and amortisation (EBITA) fell to 811 million Norwegian crowns ($142.1 million) in the three months to September, above the average estimate of 613 million and down from 1.03 billion in the same quarter last year.
Shares in Orkla rose 1.6 percent to 54.20 crowns by 0832 GMT against a 0.4 percent rise in the main index in Oslo.
"Underlying operations were largely better than expected," said analyst Eivind Bergkaasa from Arctic Securities.
"Foods and Brands are continuing in a positive direction, Aluminium Solutions are finally in positive territory and it has been a good quarter for Borregaard. Elkem Solar and Financials were weak," the analyst said.
Orkla said its third-quarter operating revenues totalled 14.1 billion crowns, down from 15.9 billion in 2008. "This is largely due to weak markets for Elkem and Sapa," it said.
Analyst Nils Ove Kjerstad at Danske Markets was disappointed by the outlook. "They say competition has intensified in Orkla Brands, and they are more reserved for Aluminium Solutions," he said.
The company said its Orkla Brands unit, where profit grew in the quarter due to costs cuts, expected a continued weak trend and demanding markets in the Nordic grocery market for the rest of the year, with a negative effect in the fourth quarter.
The focus would be on growth in 2010 after working to get "back on track" in 2008-2009, Orkla said.
Orkla said the dramatic decline in its Aluminium Solutions division seems to be over, but that recovery was expected to be slow and that it would continue with further restructuring.
The acquisition of Indalex Aluminium Solutions, its biggest competitor in the United States, would be followed by restructuring in North America, Orkla said, and that two or three factories would be closed.
Equipment damaged during a fire at Elkem Solar's new plant had now been repaired, and the ramp-up towards normal production levels would start at the end of November, the group said.
Orkla said volumes would be smaller in 2009 than previously anticipated, and that it would reach full capacity by end-2010.
The solar market was challenging and it was significant uncertainty about future development, Orkla said, adding that it was in dialogue with current and potential customers regarding 2010 deliveries. (Additional reporting by Camilla Bergsli; Editing by Rupert Winchester)