UPDATE 2-Monster profit beats but warns of global slowdown

(Adds CEO comments, detail on lawsuit settlement)

NEW YORK, July 31 (Reuters) - Jobs website company Monster Worldwide Inc (MNST.O) reported higher-than-expected quarterly earnings on Thursday, driven by international sales, but warned that jobs weakness in the United States was spreading abroad.

"The slowdown that started in the U.S. has clearly expanded into Europe and there are definite signs of slowdown in Asia," Chief Executive Sal Iannuzzi said in an interview.

"For Monster, given that context, for the remainder of this year and into next year, it's certainly cautious on the revenue side," he said.

But he said investment in marketing and technology would pay off with improved market share once the weakness passed, and called Monster's profitability in that context "gratifying."

Net earnings rose to $30.8 million, or 25 cents per share, compared with $28.6 million, or 21 cents per share, a year earlier. Earnings from continuing operations were 40 cents per share, 3 cents ahead of the average analyst forecast, according to Reuters Estimates.

Revenue rose 9 percent to $354 million, versus a Wall Street forecast of $363 million. International sales jumped 34 percent and now account for about 44 percent of the total.

Asked about the company's North American careers segment, which posted lower quarterly revenue, Iannuzzi said: "I wish I had a crystal ball when that will turn around. To predict any kind of sizeable pick-up in the next three months, I just wouldn't go there right now."

The New York-based company earlier this year stopped providing earnings and revenue forecasts.

Monster's results come amid a downturn in online labor demand as well as wider labor market weakness. Monster said earlier on Thursday its employment index slipped to 157 points in July from 163 in June and 183 in July 2007.

Friday's U.S. government jobs data is expected to show the seventh consecutive monthly decline in payrolls.

Separately, Monster said it has signed a memorandum of understanding to settle a class action lawsuit over its past stock options practices, at a net cost to the company of $25 million.

"The lion's shares of the issues are now behind us," Iannuzzi said, adding that the company may yet face costs related to defending former managers.

Monster's founder and former CEO, Andrew McKelvey, is required to personally pay $550,000 toward the settlement, according to the law firm representing plaintiffs in the case, Labaton Sucharow LLP.

Monster shares were unchanged at $17.74 in post-market trade after initially gaining on the results.

Monster also said it bought Trovix Inc for $72.5 million, gaining technology to improve users' ability to perform searches on the site. (Reporting by Nick Zieminski, editing by Leslie Gevirtz and Braden Reddall)