UPDATE 2-Danaher sales and earnings fall, shares lower

* EPS 89 cents; Street view 88 cents

* Rev $2.67 bln; Street view $2.78 bln

* Sees 2009 EPS $3.30 to $3.50

* Shares down 3.3 percent in premarket trade

NEW YORK, July 23 (Reuters) - Diversified manufacturer Danaher Corp (DHR.N) reported an 18.5 percent drop in quarterly profit on Thursday, citing "significant headwinds" in most of its businesses because of the weak global economy, and cut the top end of its 2009 earnings forecast.

The company, whose shares fell 3.3 percent in premarket trade, said second-quarter earnings fell to $296 million, or 89 cents per share, from $363 million, or $1.09 per share, a year earlier. The results beat analysts' average forecast by a penny, according to Reuters Estimates.

Sales also fell 18.5 percent to $2.67 billion, below a Wall Street forecast of $2.78 billion.

The company, whose products include Craftsman tools, medical and dental technology and water quality systems, said it was confident that cost-cutting measures would help position it well for the rest of the year and beyond.

Danaher, which said it has $1.3 billion in cash and another $1 billion available under its commercial paper program, indicated it was ready to step up acquisitions.

"We remain confident in this environment and are encouraged by the opportunities in our acquisition funnels today," Chief Executive Larry Culp said on a conference call.

The Washington-based company said it expected 2009 profit of $3.30 to $3.50 per share, lowering the top of the range by 20 cents. (Reporting by Nick Zieminski and Christopher Kaufman; Editing by Lisa Von Ahn and John Wallace)