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UPDATE 1-Armstrong World Q3 profit beats, ups FY10 EPS view

* Q3 adj EPS $83 vs est $0.64

* Q3 sales $739.8 mln vs est $761.1 mln

* Sees 2010 adj EPS $1.69-$1.79, up from $1.55-$1.75

Nov 5 (Reuters) - Armstrong World Industries Inc AWI.N posted better-than-expected quarterly profit, helped by growth at its building products segment, and raised its full-year earnings outlook.

Armstrong World, which makes flooring products, ceiling systems and kitchen and bathroom cabinets, now expects 2010 adjusted earnings of $1.69-$1.79 per share, up from its prior view of $1.55-$1.75 per share.

The company also narrowed its 2010 sales outlook to $2.76-$2.80 billion, from its previous outlook of $2.70-$2.85 billion.

The building products segment grew 6 percent and contributed about 42 percent to sales. Higher margins at the segment helped growth.

All other segments saw a decline in sales.

In August, the company decided to quit the European residential flooring business, hurt by declining demand for its residential cushion vinyl flooring. [ID:nSGE67I0GF]

For the July-September quarter, the company reported net income of $24.6 million, or 42 cents a share, compared with $64.4 million, or $1.12 cents a share, a year ago.

Excluding items, the company earned 83 cents a share.

Net sales fell about 2 percent to $739.8 million.

Analysts on an average were expecting earnings of 64 cents a share on revenue of $761.1 million, according to Thomson Reuters I/B/E/S.

Shares of the Lancaster, Pennsylvania-based company closed at $45.65 on Thursday on the New York Stock Exchange. The shares have risen 25 percent since the company reported better-than-expected second-quarter results in August. (Reporting by Megha Mandavia in Bangalore; Editing by Roshni Menon)

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