UPDATE 2-URS profit tops Wall Street, backlog down

* Q2 EPS excluding item 73 cts vs 65 cts Wall St estimate

* Q2 backlog down to $18.1 bln vs $19.6 bln at end of Q1

* Profit outlook increased to reflect sale of MIBRAG stake

* Shares down 2 pct (Adds share price, executive comment, byline, background)

By Braden Reddall

SAN FRANCISCO, Aug 12 (Reuters) - Engineering company URS Corp (URS.N) posted unexpected growth in second-quarter profit, but saw its order backlog shrink over the period as some companies remain reluctant to commit to spending too soon.

URS shares slipped 2 percent in after-hours trading, giving up much of their regular trade gains.

Second-quarter net profit rose to $95.1 million, or $1.16 per share, from $59.4 million, or 70 cents per share, in the quarter a year ago, the company said on Wednesday.

Excluding $35.5 million, or 43 cents per share, from the sale of URS's stake in German mining and power business MIBRAG, the San Francisco-based company earned $59.6 million, or 73 cents per share.

Analysts had been looking for a profit of 65 cents per share on average, according to Reuters Estimates.

URS's backlog of orders fell to $18.1 billion at the end of the quarter from $19.6 billion three months before, although that was above the $17.2 billion it had at the beginning of 2009.

"Our federal market remains robust and infrastructure work is steady," Chief Executive Martin Koffel said. "Although we are seeing a buildup of demand in our power and industrial and commercial sectors, contract awards in these businesses have slowed due to the effect of the economy on our customers."

The company also updated its full-year profit guidance to account for the MIBRAG gain, increasing it to $3.20 to $3.35 per share from $2.80 to $2.95 per share.

Sector leader Fluor Corp (FLR.N) topped analyst estimates with its second-quarter profit report on Monday and maintained its full-year earnings guidance, but offered a somewhat cautious view of the industry's prospects. [ID:nN10527856]

URS shares have gained 24 percent so far in 2009, broadly in line with Fluor and compared with 11 percent for the broader market benchmark S&P 500 index .SPX. (Reporting by Braden Reddall; editing by Robert MacMillan and Andre Grenon)