UPDATE 1-Cookson sees FY profit at upper end of analysts' view

* Says Q3 trading profit improved markedly * Q3 revenue falls 26 pct to 498 mln stg * Says overall trends continue to improve

* Expects to be in compliance with financial covenants (Adds details)

Nov 10 (Reuters) - British industrial materials firm Cookson Group Plc (CKSN.L) said on Tuesday it expected its full-year profit to be around the upper end of analysts' forecasts and that trading profits in the third quarter improved markedly helped by cost cuts.

The company, which supplies ceramics products to the steel, glass and solar industries, said overall trends continued to improve in the third quarter ended Sept. 30 and it benefited from the trading seasonality of its electronics and precious metals units and a slight pick up in the foundry markets.

"Trading performance in 2010 will be dependent on the speed and strength of the recovery in the global economy and in our key end-markets of steel production, foundry castings and electronics, which remain difficult to predict with any certainty," Cookson said in a statement.

In August, the company had said it was seeing trends at the electronics end-markets improving and a recovery in steel production end-markets.

It said overall end-market and trading performance trends have continued into the fourth-quarter, although it anticipated a normal reduction in activity in December due to some customer production shutdowns.

Cookson expects to be in compliance with its financial covenants within its debt facility as at the year ending Dec. 31.

Net debt as at September end was 471 million pounds ($789.2 million), above the 438 million pounds at June end.