UPDATE 1-Barloworld sees FY headline EPS lower

* FY oper profit seen 20-30 pct lower

* Sees FY headline EPS from continuing ops 40-50 pct down

(Adds details, shares)

JOHANNESBURG, Nov 5 (Reuters) - South African industrial group Barloworld Ltd (BAWJ.J: Quote, Profile, Research) said on Thursday it expects to post a drop in full-year earnings, sending its shares lower.

Barloworld said it expects basic and headline earnings per share from continuing operations for the year to end-September to be 40-50 percent lower, while operating profit is expected to drop by between 20-30 percent.

The firm, which represents leading international brands such as Caterpillar (CAT.N: Quote, Profile, Research) earthmoving machines and Avis car hire, said earnings had been hit by a fall in operating profit, restructuring charges, a stronger rand and higher finance costs.

Its shares slipped 0.12 percent to 48.54 rand by 1304 GMT, slightly better than a weaker JSE Mid-cap index .

Barloworld forecast a tough second half in May as a recession in Europe hit its international business and half-year profits almost halved. [ID:nLB572951]

The group said it expects basic and headline EPS, including both continuing and discontinued operations, to fall by 45-55 percent, mainly due to losses incurred in its discontinued Scandinavian car rental business and lower earnings from its continuing operations.

Barloworld is expected to release its results on Nov. 16. (Reporting by Serena Chaudhry)