NEW YORK (Reuters) - Bermuda-based diversified manufacturer Ingersoll-Rand Co Ltd cut its profit forecast for the third quarter and all of 2008, citing weaker North American and Western European markets and a rebound in the US dollar, but shares recovered for a second day from last week's declines.

Ingersoll, a maker of climate control equipment and security technology, expects third-quarter earnings from continuing operations in a range of 98 cents to $1, below its earlier estimate of $1.05 to $1.10 per share.

It estimated full-year profit in a range of $3.35 to $3.55 per share, down from its earlier forecast of $3.80 to $3.90 per share.

Analysts were looking for the company to earn $1.05 per share in the third quarter and $3.72 per share for the full year.

"We had lower-than-expected revenues in all of our business segments, due to weaker North American and Western European markets, which were particularly slower in September," chief executive Herb Henkel said in a statement.

Ingersoll estimated third-quarter sales of $4.3 billion, up 2 percent from a year earlier, and below its earlier estimate of $4.4 billion. Wall Street's sales estimate for the third quarter was also $4.4 billion.