UPDATE 1-Regal Beloit raises Q3 profit view

* Sees Q3 EPS $0.80-$0.85 vs prior view of $0.60-$0.68 * Continues to see rev decline of about 25 pct

Oct 8 (Reuters) - Regal Beloit Corp (RBC.N), which makes industrial motors and power generators, raised its earnings outlook for the third quarter, helped in part by favourable tax rate and lower material costs.

However, the company still expects revenue to fall by about 25 percent in the quarter from the year-ago period, and forecast sequentially lower fourth-quarter sales, citing normal seasonal patterns.

For the third quarter, the company now expects earnings of 80 cents to 85 cents a share, up from its prior view of 60 cents to 68 cents a share.

The improvement is being driven by a lower effective tax rate, lower raw material costs, the sales mix of energy efficient products and cost reductions, the company said in a statement.

Shares of the company were up more than 1 percent at $47.91 in trading after the bell. They closed at $47.24 Thursday on the New York Stock Exchange. (Reporting by Bijoy Koyitty in Bangalore; Editing by Pradeep Kurup)