UPDATE 2-Air Products posts lower earnings, cuts forecast

* Q2 EPS 89 cents from cont. ops. vs. estimate of 82 cents

* Sales down 23 pct; FY09 outlook cut

* Looking at additional cost cuts

(Adds details)

NEW YORK, April 22 (Reuters) - Industrial gas supplier Air Products and Chemicals Inc (APD.N) said Wednesday its quarterly earnings fell more than 30 percent, cut its 2009 earnings forecast and said it was looking at more ways to reduce costs.

"The unprecedented deterioration in global manufacturing continued into our second quarter, as producers extended their holiday shutdowns," CEO John McGlade said in a statement.

Net income for the second quarter ended March 31 fell to $205.6 million, or 97 cents a share, from $314.3 million, or $1.43 a share, a year earlier.

Income from continuing operations was 89 cents a share. Analysts on average were expecting earnings of 82 cents a share before special items, according to Reuters Estimates.

Revenue fell 23 percent to $1.96 billion. The analysts' average estimate was $2.04 billion.

"Given the lack of economic momentum, the company continues to look at additional cost actions that could result in a charge in its fiscal third quarter," McGlade said.

In December, the company had said it would eliminate about 7 percent of its workforce in response to the weak economic conditions and falling sales. [ID:nBNG395085]

Excluding the impact of potential charges from the additional cost reduction measures, the company expects third-quarter earnings per share from continuing operations to be between 93 cents and $1.02. That range is below the average analyst forecast of $1.06 a share.

For the full fiscal year 2009, Air Products said it now expects earnings per share from continuing operations to be between $3.85 and $4.05, down from its prior forecast of $4.00 to $4.30.

Shares of the company, which are up 15 percent so far this year, closed at $58.05 Tuesday on the New York Stock Exchange. (Reporting by Hezron Selvi; Editing by Lisa Von Ahn and Gerald E. McCormick)