* Q3 EBITA down 31.5 pct at 34.3 mln euros, below estimates
* Keeps 2009 outlook
* International markets may return to growth only after 2010
* Shares down 5.7 percent
(Adds CFO, analyst comments, share price)
By Eva Kuehnen
FRANKFURT, Oct 22 (Reuters) - German DIY chain Praktiker is braced for a long downturn in key markets and does not expect a rebound next year, it said after a worse than expected slump in quarterly operating profit hit its shares.
"We are still experiencing a recessionary environment in all countries in which we operate, regardless of the question whether economists still call it a recession or not," finance director Thomas Ghabel said on Thursday.
Economists say the euro zone economy returned to growth in the third quarter and expect it to continue to expand, albeit slowly in coming quarters.
"Even if the economies will develop a notch better than anticipated, it will not make much of a difference for the remaining months of the year," Ghabel said.
Germany's second-largest home improvement chain after Tengelmann's OBI said an economic upturn could already be felt in Germany next year but "it might take a little longer in the international markets".
Praktiker's international operations used to be the driver of profitable growth and accounted for two thirds of 2008 operating earnings.
To cope with the downturn, the company has set up a restructuring programe, "Praktiker 2013", bundling its efforts to reduce costs, limit capital expenditure and curb inventories.
Praktiker's third-quarter earnings before interest, tax and amortisation (EBITA) fell 31.5 percent to 34.3 million euros ($51 million), missing the average estimate for 37 million in a Reuters poll, while sales fell 4.8 percent to 968 million.
Analysts were disappointed with the results for what UniCredit analyst Volker Bosse said was "another weak quarter". Bosse stuck to his 'sell' rating on the stock.
Praktiker shares were down 5.7 percent to 9.24 euros by 1100 GMT, the biggest faller in Germany's midcap index, which was down 1.8 percent.
Praktiker still expected to post a "reasonable, positive operating result" this year despite a slight decrease in sales.
Ghabel's comments echoed Britain's biggest household goods retailer, Home Retail, which also struck a cautious tone on Wednesday about prospects for consumer demand as it posted flat first-half profits.
EASTERN EUROPE WEIGHS
The group's eastern European business has been hit hard by the recession and exchange rate swings and its third-quarter operating profit there fell by more than half.
"There is a clear indication that the people have less money in contrast to Germany where the retail environment is supported by the high savings rates of German private households," Ghabel said, adding Ukraine was particularly difficult.
Praktiker trades at about 18.4 times forecast earnings, according to Thomson Reuters StarMine, which weights analyst estimates by their track record.
It trades at a premium to Home Retail and Europe's top home improvement retailer, Kingfisher, as well as U.S. peers Home Depot and Lowe's Companies Inc.
"We are a believer in the mid-term potential for DIY products in eastern Europe but short-term expectations are already too high. In our view, too much upswing is priced in already," UniCredit's Bosse said. (Editing by Dan Lalor) ($1 = 0.6697 euro)