Feb 24 (Reuters) - French construction group Eiffage expects its financial results to improve this year, led by an increase in turnover at its contracting division, but profits will still be below 2019 levels, it said on Wednesday.

The company, which runs construction projects, urban development and toll roads, reported a 37% decline in its full-year operating profit on ordinary activities in 2020 to 1.3 billion euros ($1.58 billion), while revenue dropped by 10% to 16.3 billion euros.

Construction activity was hit by coronavirus restrictions. Eiffage warned last March that its 2020 earnings would "inevitably fall" and recovery was likely to be gradual.

France's third-largest builder behind Vinci and Bouygues said on Wednesday that contracting activity in the second half of last year returned close to 2019 levels and was expected to rise "significantly" in 2021 thanks to a high order book.

However, in the concessions division travel restrictions continue to weigh on motorway and airport traffic, it said.

France, the euro zone's second-biggest economy, suffered its deepest post-war recession last year, with gross domestic product contracting 8.3% due to the coronavirus outbreak and measures to contain it, including two national lockdowns.

Eiffage proposed a dividend of 3 euros per share having scrapped last year's payout.

($1 = 0.8243 euros) (Reporting by Anna Rzhevkina; Editing by Jan Harvey and Elaine Hardcastle)