UPDATE 1-Germany's Gea Q1 EBIT down 26 pct, misses estimates

* Q1 EBIT 56 mln eur vs Reuters poll avg 62 mln eur

* EBIT is before restructuring expenses of 2.2 mln eur

* Reiterates expects 2009 revenue to drop

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FRANKFURT, May 5 (Reuters) - German engineering group Gea (G1AG.DE) reported a 26 percent drop in first-quarter operating profit on Tuesday, missing market expectations after a sharp decline in earnings from energy and farming products.

Earnings before interest and tax dropped to 56 million euros ($74 million) before restructuring expenses, driven by a 59 percent decline in its Energy and Farm Technology division. Revenue dropped 6.5 percent, roughly in line with forecasts.

A Reuters poll of analysts had on average estimated EBIT at 62 million euros, sales at 1.06 billion and net income at 32 million.

Gea said restructuring charges of around 2.2 million euros were booked in the first quarter for the planned reduction of around 700 full-time employees and 600 part-time staff.

It reiterated this year's sales will be lower than in 2008 and margins will be negatively affected despite cost-cutting measures, and said it could not give a more detailed forecast due to uncertainty of market developments.

Gea trades at 8.1 times its forward 12-months earnings, Alfa Laval at 11.4 and SPX (SPW.N) at 10.8 times, according to StarMine. (Reporting by Marilyn Gerlach and Boris Groendahl; Editing by David Holmes)