UPDATE 2-Australia's Boral cuts f'cast on US housing downturn

(Adds analyst comment, updates shares)

MELBOURNE, May 8 (Reuters) - Australian building materials maker Boral Ltd (BLD.AX) cut its full-year profit forecast on Thursday due to the deterioration in U.S. home-building, sending its shares down 5 percent.

It now expects profits in the year to June 2008 to fall about 20 percent from last year, rather than the 15 percent it forecast in February.

Boral said in a statement that profit after tax would be at the bottom end of market forecasts of between A$234 million ($221 million) and A$256 million.

"Clearly U.S. housing hasn't reached the bottom yet," said Scott Marshall, head of industrials research for Shaw Stockbroking.

"You'd have to assume there remains risk for Boral's operations in the United States."

Boral said annualised U.S. housing starts in the March quarter were about 25 percent weaker than in the December half, and there was no sign of the normal spring recovery.

"The second-half result for the U.S. business will be significantly lower than in the first half," Boral said.

It said it would cut production at its bricks and roof tile plants, with brick output to be about 40 percent lower than in the first half.

"Although we have seen improved results from the Australian businesses and have taken steps to reduce the earnings impact of the U.S. downturn, these actions will be insufficient to offset the impact of the continued deterioration in the U.S. housing market and poor weather in the March quarter," Chief Executive Rod Pearse said in the statement.

Boral's shares fell to a low of A$5.65 after the profit warning and last traded down 4 percent at A$5.71 in a broader market that was down 1.1 percent.

Analysts said a 10-month inventory of unsold housing in the United States would weigh on the outlook for Boral's 2009 profit. Forecasts had been for a 2009 profit of around A$277.5 million, according to Reuters Estimates.

"Clearly, 2009 has got to be at risk," Shaw's Marshall said. (Reporting by Sonali Paul; Editing by Alan Raybould)