UPDATE1-Altron sees FY EPS down 18-30 pct, shares drop

* Powertech unit hit by slowdown in residential sector

* Sees diluted adjusted headline EPS 15-25 pct lower

* Shares down as much as 9 pct

(Adds details, share price)

JOHANNESBURG, Feb 5 (Reuters) - South Africa's Allied Electronics Ltd (ATNJ.J) said on Thursday it expected annual basic earnings per share to fall by between 19 percent and 30 percent, sending its shares down as much as 9 percent.

Altron said in a statement that headline earnings per share (EPS) for the year to end February would fall by 25 percent to 35 percent as a downswing in the building and construction sector hit its energy cable unit Powertech. Headline EPS strips out certain one-off, financial and non-trading items.

Fully diluted adjusted headline EPS, which adjusts for one-off items linked to acquisitions and which the company says is the best measure of profitability, would drop 15 percent to 25 percent, the company said.

Shares in the electronics and technology holding firm fell about 9 percent in early trade but recovered slightly to trade 4.96 percent lower at 22.81 rand by 0846 GMT, lagging the broader All share index which was flat.

Altron said the global financial market turmoil, as well as pressures locally, created uncertainty around future trading conditions.

The company said it was considering mothballing certain manufacturing facilities in Powertech's energy cable business because it expected demand to remain weak until the building sector recovers.

"Powertech has experienced a difficult trading period as a result of the slowdown in the building and construction sector which has impacted primarily on the energy cables business," Altron said.

Altron also holds a 62 percent stake in Altech (ALTJ.J), which is holding up relatively well amid the economic downturn and on Wednesday forecast a 10 percent to 19 percent rise in annual headline EPS. (Reporting by Tiisetso Motsoeneng; editing by Karen Foster)