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* Q3 adj EBIT seen up 3 pct at 583 million euros
* Steelmaker seen confirming FY outlook
* Good demand from makers of cars and machinery
* Loss at Steel Americas seen narrowing in Q3
FRANKFURT, Aug 12 (Reuters) - ThyssenKrupp (TKAG.DE), Germany's biggest steelmaker, is expected to unveil continuing growth in third-quarter underlying profit on brisk demand from carmakers and lower ramp-up costs for a new flagship plant in Brazil.
ThyssenKrupp -- which also makes submarines, elevators and chemical plants -- will likely say that all divisions but Steel Americas were profitable during the period as it basks in Germany's continuing economic recovery.
Steel Americas would have narrowed its loss in the quarter to June as the Brazilian carbon steel plant came to grips with difficulties starting up production.
Analysts expected, on average, that earnings before interest and taxes (EBIT), adjusted for one-offs and losses at Steel Americas, rose 3 percent to 583 million euros ($821.2 million) from the year-earlier quarter. a Reuters poll found. [ID:nLDE779047]
Analysts expect the steelmaker will confirm its full-year target of about 2 billion euros in adjusted EBIT despite concerns of a double-dip in the economy.
"(Its) guidance of around 2 billion euros EBIT is still within reach, as we expect higher losses at Steel Americas to be offset by solid performance at Steel Europe and non-steel units," according to Bernd Laux of Cheuvreux.
Carmakers are ramping up output in Germany, thanks to a voracious appetite for luxury cars in China and other emerging markets, giving ThyssenKrupp's bread-and-butter carbon steel business the pricing power to fully pass on higher raw material costs.
Germany's economic recovery has been chugging along nicely since the industrialised world emerged from recession and while recent data showed that the growth surge is losing momentum, its mechanical engineering sector stills enjoy booming export orders.
Healthy demand from makers of cars, machine tools, wind turbines and gas pipelines helped smaller rival Salzgitter (SZGG.DE) raise its forecast for 2011 on Thursday, but steel trader Kloeckner & Co (KCOGn.DE) warned that the market could see a return to recession. [ID:nnLDE77A01L] [ID:nLDE779017]
Arcelor Mittal ISPA.AS, the world No. 1 steelmaker, beat expectations with quarterly core profit hitting a post-crisis record. [ID:nLDE76QO3K]
According to Thomson Reuters' StarMine, which weights analysts based on their track record, ThyssenKrupp trades 7 times its estimated 12-month forward earnings, a discount to Outokumpu's multiple of 27 but on par with ArcelorMittal's 6.9.
Graphic on global steel production:
Graphic on regional breakdown of global steel production:
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^] (Reporting by Marilyn Gerlach; Editing by Gary Hill)