* Q3 earnings 58.4 pence/share, vs 55.7p company consensus
* Sees group sales up 6 pct, net income up 16 pct for year
* Maintains ex-pharma sales and profit targets for 2010
* Shares up 1.8 percent
(Rewrites with CEO comment, analyst and shares)
By David Jones
LONDON, Nov 2 (Reuters) - Reckitt Benckiser beat forecasts with an 18 percent rise in third-quarter earnings and eyed strong growth for the year with a further boost to come from newly-acquired Durex condoms and Scholl sandals maker SSL.
The British consumer goods group saw rapid growth in emerging markets and from its pharmaceuticals business which helped offset sluggish European and North American markets and tougher competition from its key rivals in Europe.
Chief executive Bart Becht said the group was looking for overall annual sales growth of 6 percent and net profit growth of 16 percent in 2010, even before the effect of the SSL acquisition completed this week.
"The consumer environment is challenging, especially in western Europe and North America where there is little or no growth, but we are seeing good growth in developing markets," he told a conference call.
These developing markets, which account for nearly a quarter of Reckitt's sales, saw third-quarter revenue up 18 percent, led by strong growth of its Dettol soaps, Strepsil throat lozenges, Vanish stain removers and Mortein pest control aerosol sprays.
Reckitt shares rose 1.8 percent to 3,588 pence by 0850 GMT, to be the FTSE 100 index's biggest riser. They have performed in line with the British market and peers this year after recovering from mid-year weakness on slow-growth concerns.
"Given that Q3 was, to many, Reckitt's most challenging quarter these results are impressive," analyst Graham Jones, at broker Panmure Gordon, said.
The group, which also makes Cillit Bang cleaners and Nurofen painkillers, reported third-quarter earnings of 58.4 pence per share, above a company-compiled consensus of 55.7 pence and a Thomson Reuters I/B/E/S consensus of 54.9 pence.
Its 2010 targets were unchanged. It is looking for a 5 percent rise in underlying sales and 10 percent increase in operating profit, after stripping out its high-growth Suboxone pharmaceuticals unit and taken at constant currency.
RAISING EXPECTATIONS
Reckitt sets targets for its core business, excluding its drugs arm whose main revenue generator is heroin substitute Suboxone. It lost its exclusive licence for this in October 2009 and expects generic competition to eventually emerge and hit its profit.
"The Q3 beat and continued lack of generic entry for Suboxone means we raise our full-year earnings forecasts from 215.3 pence to 229.2 pence," said Panmure's Jones.
Reckitt said third-quarter underlying sales ex-pharma rose 5 percent and operating profit 10 percent, both in line with its targets, helped by the launch of products such as its Lysol/Dettol no-touch hand soap system.
Analysts expected competition to intensify with Procter and Gamble's Actilift stain remover being rolled out in Europe, while the U.S. giant keeps up the pressure with its Fairy dishwash products and AmbiPur air freshener acquisition.
Reckitt agreed to buy SSL in July for 2.54 billion pounds ($4.05 billion) and, after the disposal of two minor brands to satisfy European Union regulators, the deal was completed on Monday.
Becht said it would look to improve on SSL's 4 percent growth from consumer brands. ($1 = 0.6274 pound) (Editing by David Hulmes)