UPDATE 3-Danaher profit, outlook beat estimates

* Q3 oper shr 89 cts vs 86-ct estimate

* Q3 sales fall 14.5 pct to $2.75 bln

* Sees Q4 adjusted EPS $0.99 to $1.09

* Shares flat in premarket trading (Updates with outlook, CEO comment)

NEW YORK, Oct 22 (Reuters) - Diversified manufacturer Danaher Corp (DHR.N) reported higher-than-expected quarterly profit on Thursday, citing cost-cutting and profitable acquisitions, and forecast current-quarter earnings above Wall Street estimates.

The company said it was stepping up acquisition activity and had signed eight deals in as many weeks, in an economic environment it called "stabilizing yet still challenging."

Third-quarter net earnings fell 5.5 percent to $351 million, or $1.05 per share, from $372 million, or $1.11 per share, a year earlier.

Before items, the company said earnings fell 22 percent to $299 million, or 89 cents per share.

Analysts were expecting 86 cents per share, according to Thomson Reuters I/B/E/S.

"Our focus on capturing market share while also accelerating cost reductions in a difficult economy, coupled with our continued progress in our acquisition efforts, positions us well for the balance of 2009 and beyond," Chief Executive Officer Lawrence Culp said in a statement.

Sales sank 14.5 percent to $2.75 billion, but were slightly ahead of forecasts of $2.72 billion.

Washington-based Danaher, which has historically grown through acquisitions, said it had signed eight deals in the past eight weeks, to expand its environmental, test and measurement, product identification, and dental businesses.

"We are optimistic about our ability to deploy capital in this environment," Culp said on a conference call.

Danaher said it expected fourth-quarter sales would improve sequentially from the third quarter, and forecast earnings from continuing operations of 99 cents to $1.09 per share, ahead of analysts' estimates of 94 cents.

Shares of Danaher were up 1 cent at $70.58 in light trading before the market opened. (Reporting by Nick Zieminski and Christopher Kaufman; Editing by Lisa Von Ahn and Gerald E. McCormick)