(Adds details on cost cutting measures and Q3 results in paragraphs 3, 5-7, share move in final paragraph)

Nov 7 (Reuters) - German chemicals group Evonik Industries beat quarterly core profit expectations on Tuesday, as its cost discipline helped to offset stubbornly low demand.

Evonik's chemicals supply manufacturers from the auto sector to Pfizer and BioNTech's COVID vaccines, as well as animal feed producers, where increased demand also spurred profits.

In common with other German chemical-makers, it has experienced subdued demand, as inflation leads customers to draw on inventories before restocking.

"The economic recovery is still a long time coming," CEO Christian Kullmann said in an earnings statement, but added Evonik's focus on cost savings was having an effect.

Evonik reported a 21% drop in adjusted core earnings (EBITDA) to 485 million euros ($519.2 million) in the third quarter, beating an analysts' forecast of 456 million in a poll provided by the company.

The beat was driven by the nutrition and care unit whose adjusted EBITDA fell by 14% to 127 million in the quarter, 22% above estimates, aided by higher demand for its essential amino acids used in animal feeds and initial savings from the restructuring plan launched in April.

Finance chief Maike Schuh said Evonik's focus was on cash, which included scrutiny on investment decisions and prudent management of working capital. She said the discipline would also beneift the company in the fourth quarter.

The group's free cash flow increased by 63% in the third quarter, even as its sales fell by 23% to 3.77 billion euros due to lower volumes and prices, along with a negative effect from converting foreign currencies into euros.

The Essen-based company reiterated its full-year outlook, which it has cut twice this year, and said it expected weak demand for the rest of the year.

Shares rose around 1% in early trading. ($1 = 0.9341 euros) (Reporting by Anastasiia Kozlova and Marta Frackowiak in Gdansk; editing by Milla Nissi and Barbara Lewis)