UPDATE 1-Diebold raises 2008 profit forecast; shares rise

(Recasts; adds details, share movement)

Sept 30 (Reuters) - Diebold Inc (DBD.N), a maker of automated teller machines, raised its 2008 profit outlook, bolstered by its cost-cutting efforts, a lower effective tax rate and the strong performance of its Brazilian voting and lottery businesses, sending its shares up more than 7 percent.

The company, which is also known for its electronic voting machines, expects 2008 earnings of $2.40 a share to $2.45 a share, up from its prior outlook of $2.25 a share to $2.30 a share.

Analysts on average expect the North Canton, Ohio-based company to earn $2.30 a share, before special items, according to Reuters Estimates.

Diebold, whose revenue recognition policies were being investigated by the U.S. Securities and Exchange Commission, also filed its annual report for the year ended Dec. 31, 2007 and quarterly reports for the quarters ended June 30, 2007 , Sept. 30, 2007 , March 31, 2008 and June 30, 2008.

The company said the investigations by the SEC and U.S. Department of Justice remain ongoing.

Diebold shares rose to $35.50 in trading after then bell. They had closed at $33.11 Tuesday on the New York Stock Exchange. (Reporting by Dhanya Skariachan in Bangalore; Editing by Pratish Narayanan)