UPDATE 1-Sealy Q3 results beat Wall Street view on lower costs

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Oct 7 (Reuters) - Mattress maker Sealy Corp's (ZZ.N) third-quarter profit halved, but beat market estimates on its cost-cutting efforts and a recently launched bedding line, sending its shares up 7 percent.

The world's largest mattress maker, which rolled out its new PosturePedic line early this year, has been grappling with rising prices of steel and foam.

The company, which cut its promotional expenses, salary and fringe-benefit-related costs, and spending on professional services and other discretionary items, said selling, general, and administrative expenses fell 5 percent to $132.9 million in the quarter.

The bedding maker, whose brands include Sealy, Sealy Posturepedic, Stearns & Foster and Bassett, said third-quarter earnings fell to $10.9 million, or 12 cents a share, from $21.5 million, or 22 cents a share, a year earlier.

Sealy recorded a $2.4 million restructuring charge in the quarter on the closure of some facilities.

Sales at the Trinity, North Carolina-based company fell 9 percent to $405.0 million. While total U.S. net sales fell about 12 percent to $296.1 million, international net sales fell 2.2 percent to $108.9 million.

Analysts on average expected the company to earn 8 cents a share, before special items, on revenue of $390.1 million, according to Reuters Estimates.

Sealy, like other mattress makers Tempur-Pedic (TPX.N) and Select Comfort (SCSS.O), have been struggling with softer sales at its U.S. markets after cash-strapped shoppers cut down on their appetite for big-ticket items amid falling home values and tighter lending conditions.

Sealy's shares were up 27 cents at $4.32 in trading after the bell. They had closed down 18 percent at $4.05 Tuesday on the New York Stock Exchange. (Reporting by Dhanya Skariachan in Bangalore; Editing by Vinu Pilakkott)