UPDATE 2-Waste Management profit tumbles 11 percent

* Q3 adjusted EPS 54 cents tops 53 cent consensus

* Holds full-year outlook steady at $1.95-$1.99/shr

BOSTON, Oct 29 (Reuters) - Top U.S. trash hauler Waste Management Inc (WM.N) posted an 11 percent decline in quarterly profit on Thursday, as the recession and construction slump eroded demand for garbage removal and recycled products.

Its third-quarter earnings fell to $277 million, or 56 cents per share, from $310 million, or 63 cents per share, a year earlier.

Factoring out one-time items, profit was 54 cents per share, a penny ahead of analysts' consensus of 53 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 14 percent to $3.02 billion.

Waste Management held its full-year profit forecast steady at $1.95 to $1.99 per share.

The Houston-based company has faced slackening demand for its services this year as a slowdown in construction activity has meant less need to haul away building and demolition refuse and lower natural gas prices made its facilities that produce electricity by burning landfill gases less profitable.

Waste Management shares are down about 6 percent so far this year, while the Dow Jones U.S. Waste & Disposal Services Index .DJUSPC is up 2 percent. (Reporting by Scott Malone; Editing by Derek Caney and Maureen Bavdek)