UPDATE 2-Watson Wyatt Q3 profit falls, cuts FY view

* Q3 EPS 95 cents vs 96 cents yr-ago

* Q3 revenue $417.0 mln vs $457.5 mln yr-ago

* Cuts FY EPS view to $3.35-$3.40

* Cuts FY rev view to $1.65 bln-$1.67 bln

* Shares fall 31 pct (Recasts; adds conference call details, share movement)

May 7 (Reuters) - Human-resource and consultancy services provider Watson Wyatt Worldwide Inc (WW.N: Quote, Profile, Research) posted a 5 percent drop in quarterly profit, hurt by unfavourable exchange rates and lower demand for discretionary services, and cut its full-year forecast, sending its shares down 31 percent.

The company's human capital segment, which covers areas like executive pay and talent management, posted a 25 percent drop in revenue in the quarter.

Profitability pressure exists in the more cyclical business segments, particularly human capital, which accounts for about 10 percent of revenue, Chief Financial Officer Roger Millay said on a conference call with analysts.

"We also expect demand to continue to decline in the human capital group," Millay said.