UPDATE 2-Quiksilver forecasts surprise Q4 loss, shares fall

* Q3 adj EPS $0.03 in line with est

* Q3 sales drop 11.2 pct to $501.4 mln

* Sees Q4 loss per share in mid-single-digit range

* Shares slump 13 pct after the bell (Recasts; adds conference call details)

BANGALORE, Sept 3 (Reuters) - Quiksilver Inc (ZQK.N) posted a quarterly profit that was in line with market expectations, helped by improved cost-cutting efforts, but its shares slumped as the apparel maker forecast a surprise fourth-quarter loss partly due to higher interest expenses.

The retailer, which makes surf-inspired apparel, also said it will post a mid-teen percentage fall in fourth-quarter revenue from the year-ago quarter.

"Footwear sales, which until recently were trending better than apparel, have softened, and obviously every retailer is attempting to buy very conservatively," Chief Executive Robert McKnight said on a conference call with analysts.

The company sees fourth-quarter loss per share in the mid-single-digit range. Analysts expect a profit of 10 cents a share, before items, according to Reuters Estimates.

McKnight said higher interest costs related to its new financing would weigh on fourth-quarter results.

Quiksilver, which has been hurt by a sustained sales slump, has been trying to improve its liquidity position by securing additional financing. In June, it agreed with private equity firm Rhone to take a five-year loan of about $150 million. It had also agreed with Bank of America and GE Capital for a new credit facility.

The company had also announced it would consolidate its European debt obligations into a new committed four-year facility.

In January, Quiksilver had announced cost-saving measures, including plans of cutting 200 jobs and later said it would cut a further 160 jobs.

"The retail environment remains very challenging and we will continue to adapt our cost structure to this trend as we go forward," McKnight said in a statement.

For the third quarter ended July 31, the company posted net income of $1.3 million, or 1 cent a share, compared with $2.9 million, or 2 cents a share, in the year-ago quarter.

Excluding items, the company posted a profit of 3 cents a share, in line with analysts' consensus view, according to Reuters Estimates.

Revenue fell to $501.4 million. Selling, general and administrative expenses fell about 9 percent to $211.8 million.

Shares of the Huntington Beach, California-based company were down 36 cents at $2.50 after the bell. They closed at $2.86 Thursday on the New York Stock Exchange. (Reporting by Mihir Dalal in Bangalore; Editing by Anil D'Silva)