UPDATE 1-Franklin Electric Q2 profit down 62 percent

* Q2 EPS $0.25 vs $0.66 a year ago * Q2 sales down 18 pct to $165.3 mln

* Sees Q3 sales down 15-20 pct from prior year

July 27 (Reuters) - Water and fuel pumps maker Franklin Electric Co Inc (FELE.O) reported a 62 percent fall in quarterly profit, hurt by lower sales across all its segments, and forecast third-quarter sales below estimates.

For the second quarter, net income was $5.8 million, or 25 cents a share, compared with $15.3 million, or 66 cents a share, a year ago.

Excluding restructuring charges, the company earned 36 cents a share.

Sales fell 18 percent to $165.3 million. Sales from the fueling systems segment declined by about 30 percent while revenue from the water systems segment dropped about 15 percent.

Analysts on average were expecting earnings of 40 cents a share, before special items, on revenue of $177 million according to Reuters Estimates. The company sees third-quarter sales to be 15 to 20 percent less than the prior year. This translates to sales of about 172 million to 183 million, which is below analysts estimates of $191.6 million.

Shares of the company closed at $29.12 Monday on Nasdaq. (Reporting by Divya Sharma in Bangalore; Editing by Jarshad Kakkrakandy)