UPDATE 1-Continental flags slowing autos growth, to spin off powertrains

* Continental books 2.5 bln euro non cash impairments

* Continental to spin off rather than IPO powertrain unit (Recasts with statement on third-quarter earnings)

FRANKFURT, Oct 22 (Reuters) - Germany's Continental said on Tuesday that slower automobile production growth had forced the parts maker to book a 2.5 billion euro ($2.8 billion) impairment and a further 97 million euros in restructuring provisions.

Continental said in a statement it would book a loss before interest and taxes (EBIT) and net income in the third quarter and a negative net income for the full year.

"We do not anticipate that global production of passenger cars and light commercial vehicles will experience any material improvement in the next five years, so we have revised our assumptions for the medium-term market development accordingly," Chief Financial Officer Wolfgang Schaefer said in a statement.

A significant portion of the goodwill impairments stemmed from acquisitions made before 2008 with 724 million euros attributable to the Chassis & Safety unit, 1.54 billion from interiors and 244 million euros to the powertrain division.

Continental said non-cash impairments of goodwill and other intangible assets were booked in the third quarter of 2019.

Separately it said consolidated sales in the third quarter were at about 11.1 billion euros and its adjusted EBIT margin was about 5.6%. Sales in the Automotive Group were about 6.6 billion euros, with an adjusted EBIT margin of about 1.6%.

Continental also said it would no longer seek to list Vitesco Technologies, and plans for a split off of the entire powertrain unit would be submitted to a shareholder vote on April 30, 2020.

Shares in Continental were up 3.5% at 1240 GMT. ($1 = 0.8983 euros) (Reporting by Edward Taylor and Tom Sims; Editing by Alexander Smith)