UPDATE 1-Jacobs Engineering's qtly profit falls

* Q4 profit 63 cents vs Street view 68 cents

* Sees FY 2010 earnings per share $2.00 to $2.60

NEW YORK, Nov 16 (Reuters) - Jacobs Engineering Group Inc (JEC.N) reported on Monday that fourth-quarter profit dropped by about a third and earnings missed Wall Street expectations, as the construction services firm was hit by project cancellations.

Net earnings for the quarter ending Oct. 2 were $79.3 million, or 63 cents per share, compared with $114.4 million, or 92 cents per share, in the year-earlier quarter.

Revenue dropped to $2.6 billion from $3.2 billion, the Pasadena, California-based company said.

Analysts on average were expecting earnings of 68 cents and revenue of $2.64 billion, according to Thomson Reuters I/B/E/S.

"We continue to see our markets driven by a difficult economic environment and low business confidence," said President and Chief Executive Officer Craig Martin.

Jacobs also announced it had a backlog of $15.2 billion at Oct. 2, compared with a total backlog of $16.7 billion at Sept. 26, 2008. During the fourth quarter, about $320 million was removed from the backlog as a result of project cancellations, primarily from one project in the upstream oil and gas market, the company said.

Looking ahead, Chief Financial Officer John Prosser, Jr. said Jacobs expected full-year 2010 earnings per share to be in a range of $2.00 to $2.60. Currently, analysts expect $2.86. (Reporting by Steve James, Editing by Ian Geoghegan)