UPDATE 1-Barloworld FY profit down, sees challenging 2010

* FY headline EPS from continuing ops down 43 pct

* Restructuring charges, strong rand hit profit

* Expects 2010 to be challenging

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JOHANNESBURG, Nov 16 (Reuters) - South African industrial group Barloworld (BAWJ.J) expects 2010 to be challenging after posting a drop in full-year profit on Monday, hit by restructuring charges and a stronger domestic currency.

Barloworld, which represents brands such as Caterpillar (CAT.N) earthmoving machines and Avis car hire, said headline earning per share from continuing operations for the year to end-September fell 43 percent, in line with its own forecast range of 40-50 percent.

Revenue fell 10 percent to 42.2 billion rand ($5.65 billion) and operating profit -- after charges related to a black economic empowerment deal -- dropped 25 percent to two billion rand.

The firm said trading conditions in its international operations were challenging, adding business had also been hit by restructuring charges of 139 million rand, mainly in Iberia.

Barloworld has suffered in recent times as a recession in South Africa hit car sales and slowed demand for earthmoving equipment products, but a building boom ahead of the 2010 World Cup has helped cushion the blow.

The company said it expected its car rental business to remain under pressure in the first half of its new financial year, but said the build up to the 2010 soccer World Cup would help boost business in the second half. (Reporting by Serena Chaudhry)