UPDATE 1-Siemens sees favorable market environment next year

* Sees limited risks from geopolitical uncertainties

* Q4 net profit down 46 pct but ahead of consensus

* To raise dividend, launch 3 bln euro share buyback (Adds details, CEO comments)

ZURICH, Nov 8 (Reuters) - Siemens said it expects a continued favorable market environment with limited risks related to geopolitical uncertainties as the German engineering group on Thursday reported industrial profit in line with expectations.

The trains-to-turbines maker said it wanted to raise its dividend and launch a new 3 billion euros ($3.43 billion) share buyback after reporting flat industrial profit of 2.145 billion euros during its fiscal fourth quarter.

The company's net profit fell 46 percent to 681 million euros during the three months ended Sept. 30, better than the 595 million euros expected by analysts polled by Reuters.

The figure was hit by 301 million euros in restructuring charges Siemens incurred from job cuts at its troubled Power and Gas business.

The business, which has been hit by a collapse in demand for large gas powered turbines, chalked up a loss of 139 million euros during the quarter, as profitability dropped.

Siemens said the service business did well, but demand continued to slide in its manufacturing side. The business, which competes with General Electric and Mitsubishi Heavy Industries has also seen falling prices due to over capacity in the sector.

($1 = 0.8748 euros) (Reporting by John Revill; Editing by Maria Sheahan)