Globe Specialty Metals Q3 profit falls, to cut more jobs

* Q3 profit falls 91.5 pct to $900,000; sales fall 40 pct

* Sees additional job cuts in Q4 to cut costs

* Says to cut capex

* Shares indicated up 10 pct

May 29 (Reuters) - Globe Specialty Metals Inc GLBM.L, a producer of silicon metal and silicon-based specialty alloys, on Friday posted a 91.5 percent fall in third-quarter profit hurt by slower demand for its products, and said it would cut more jobs to save costs.

"Despite the dramatic downturn in the economy and the unprecedented drop in aluminum and steel manufacturing, this company continues to be profitable and generate positive and stable operating cash flow," Chief Executive Jeff Bradley said in a statement.

"We will make additional permanent cost reductions and continue to rationalize our expense base to match current demand levels," Bradley said.

The company expects additional job cuts in the fourth quarter ending June 30.

Globe also expects to reduce capital expenditure to $20 million annually, from the $46.5 million it incurred for the nine months ended in March.

For the third quarter ended March 31, net income was $900,000 compared with $10.6 million a year ago.

Globe said excluding special items and including a deferred gross margin, which is expected to be realized in the fourth quarter, net income in the third quarter would have been $6.5 million.

Net sales, excluding deferred revenues, fell 40 percent to $76.1 million, the company said.

London-listed Globe shares were indicated up 10 percent at 5.5 pence at 0650 GMT. (Reporting by Shivani Singh in Bangalore; Editing by Gopakumar Warrier)