REFILE-UPDATE 1-Pfleiderer launches more cost cuts

(Refiles to fix typo on company name in headline and to add Update 1 tag) * Pfleiderer launches more cost-cutting measures * Company will review investments * Shares up 1.6 pct by 0850 GMT

(Adds details, background, share price)

FRANKFURT, Nov 11 (Reuters) - Germany's Pfleiderer AG (PFDGn.DE) is launching more cost-cutting measures after the financial market crisis eroded its third-quarter sales and made price increases difficult.

The world's leading maker of engineered wood and laminate flooring said third-quarter revenue fell 4 percent to 436.4 million euros ($562.8 million) while its cost of sales rose because it was unable to pass on the higher raw materials costs.

But significant savings in selling and adminisative expenses resulted in a slightly higher profit from operations of 32.6 million euros compared with 32.1 million last year. Its operating margin rose to 7.4 percent from 7.1 percent.

Revenue was below the 449 million average estimate in a Reuters poll while operating profit was better than the 30 million forecast.

At 0850 GMT, Pfleiderer shares were up 1.6 percent while the German mid-cap index declined 0.8 percent.

It said the economic situation made it nearly impossible for the company to raise prices of its products and in some cases "we actually had to reduce our prices".

"For the last quarter of 2008 and for next year, we do not anticipate any improvement of the overall market, on the contrary we will prepare for difficult times," it said.

"Against this backdrop, we have decided to temporarily suspend our growth policy in favour of strict cost management to be implemented in all areas and regions." It will review planned capital expenditures and make adjustments if needed.

Pfleiderer trades at 7.6 times its earnings for the next 12 months compared with a sector average of 14.6, according to Reuter Estimates. (Reporting by Marilyn Gerlach, Editing by Michael Shields)