RPT-UPDATE 1-France's Lafarge cuts cement outlook, H1 sales down

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* H1 sales down 3 pct, Q2 sales up 2 pct

* Cuts outlook for global cement demand in its markets

* To cut 200 mln euros costs in 2011 to reduce debt

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PARIS, July 30 (Reuters) - France's Lafarge (LAFP.PA), the world's largest cement maker, cut its 2010 outlook estimate for global cement demand in its markets, as profits and sales fell in the first half, dragged down by an uncertain recovery. The group said first-half sales fell 3 percent to 7.71 billion euros ($10.09 billion), as earnings per share declined to 0.81 euros excluding one-off items.

The group cut its outlook for 2010, now forecasting global cement demand in its markets to rise by 3 percent at best or fall 1 percent at worst. The group previously expected a rise of up to 5 percent.

"Halfway though the year, given the uncertain pace of economic recovery and the contrasted situation from one country to another, we have readjusted our 2010 full-year market outlook," Lafarge said in a statement on Friday.

The group said it had lowered its volume estimates for Europe and increased them for North America, while it expected Asia and other emerging countries would continue to grow strongly.

The group, which had a net debt of 14.6 billion euros at the end of the first quarter, said it would limit investments to 1 billion euros to reduce debt, and had cut costs by 200 million euros so far this year.

It will exceed its cost-cutting target for 2010 by 200 million euros and said it had added a new target for a further cost reduction of 200 million euros next year.

Over the second quarter, sales were up 2 percent to 4.436 billion euros, while net profit fell by 38 million euros to 306 million euros.

Smaller rivals HeidelbergCement (HEIG.DE) and Italcementi (ITAI.MI) also report earning results on Friday. ($1=.7641 Euro) (Reporting by Michel Rose, editing by Geert De Clercq)