UPDATE 2-Colfax Q3 beats estimates, lowers 2009 view

* Q3 adj EPS $0.23 vs est $0.20 * Revenue down 16 pct

* Lowers 2009 EPS view to $0.88- $0.94 * Now sees FY sales down 8-10 pct organically (Recasts; adds details, background)

Nov 3 (Reuters) - Pumps and other fluid-handling products maker Colfax Corp (CFX.N) posted better-than-expected quarterly profit, helped by lower costs, but reduced its 2009 outlook.

For the full-year, the company now expects adjusted earnings of 88 cents to 94 cents a share. It had previously estimated adjusted earnings of 93 cents to $1.00 for the period.

The company also said it expects full-year organic sales to decline 8 to 10 percent compared with its prior estimate of a decline of 2 to 4 percent.

Analysts on average were looking for earnings of 91 cents a share, before items, on revenue of $521.1 million according to Thomson Reuters I/B/E/S.

"We're encouraged by the recent improvement in our order book but we are continuing to have push-outs of project deliveries," Chief Executive John Young said in a statement.

For the third quarter, net income was $1.8 million or 4 cents a share, compared with $13.7 million, or 31 cents a share, a year ago.

The company, which also sells replacement parts and performs repair services for its manufactured products, earned 23 cents a share on an adjusted basis.

Net sales of the company, whose products are used in sectors such as oil and gas and power generation, fell 16 percent to $128.5 million.

Analysts on average were expecting earnings of 20 cents a share, before special items, on revenue of $122.4 million according to Thomson Reuters I/B/E/S.

The company said that on a sequential basis, organic orders were up 15 percent, driven by increases in the commercial marine, navy, power generation and general industrial markets.

Selling, general and administrative expenses were down 15 percent to $28.1 million in the quarter.

The company, which has cut its workforce by about 230 employees since the beginning of the year, said it was continuing to streamline its operations and reduce cost structure.

Shares of the Richmond, Virginia-based company closed at $10.89 Monday on the New York Stock Exchange. (Reporting by Divya Sharma in Bangalore; Editing by Aradhana Aravindan)