UPDATE 2-BAT's nine-month earnings jump 17 pct

* Nine-month earnings 95.97 pence a share, up 17 percent

* No effect yet from world economic downturn

* Shares dip 3.4 percent, analysts cite profit taking

(Adds further details, comment by analyst, BAT spokesman)

By David Jones

LONDON, Oct 30 (Reuters) - British American Tobacco Plc, the world's second-biggest cigarette maker, reported a 17 percent rise in nine-month earnings, at the top end of market forecasts, and said it was well-placed to cope with the impact of a downturn in consumer spending.

London-based BAT, which makes Dunhill, Kent, Pall Mall and Lucky Strike cigarettes, said its range of differently priced brands and its wide geographic spread would help to mitigate the effects of any consumer downturn.

The cigarette maker, second in size to Philip Morris International, posted adjusted diluted earnings per share of 95.97 pence for the first nine months of 2008. Analysts on average had forecast 94.4 pence with individual estimates ranging between 93.6p and 96.6p.

Chairman Jan du Plessis said he had seen no effect on the group from concerns over the prospects for the world economy and consumer behaviour and was upbeat about the group's prospects. "The impact of any consumer downturn on our business should be mitigated by our balanced and innovative brand portfolio covering all consumer price points," he added in a statement.

BAT shares drifted down 3.4 percent to 17.58 pounds by 0910 GMT which analysts put down to profit taking after a strong run with some saying the results would lead to 2008 upgrades.

"Following better than expected Q3 results, and due to the further depreciation of the pound since the Q2 results in August, we would expect consensus for the full year 2008 to increase 1-2 percent," said UBS analyst Jonathan Leinster.

BAT said its cigarette volumes rose an underlying 1 percent in the first nine-months after a 1 percent rise in the first-half, compared to its 1 to 1-1/2 percent annual growth target, but its top four brands were up 17 percent.

"We are not recession proof but we are certainly recession resistant," said BAT spokesman Michael Prideaux.

He said the group covers all price points with premium brands like Kent, Lucky Strike and Dunhill ranging to value for money Pall Mall while its good geographic spread means its 10 top markets are made up of 5 developed and 5 developing ones.

Currency, largely the weak pound against the dollar, euros and yen, gave a nine-month benefit of 236 million pounds, and at current rates BAT said there will be a benefit at the full year.

BAT follow better than expected quarterly results last week from Philip Morris, home to the Marlboro brand, and Reynolds American where BAT holds a 42 percent stake.

BAT's shares have shown tobacco's defensive qualities so far this year, outperforming the FTSE 100 index by 42 percent, the DJ food and beverage index by 16 percent and UK rival Imperial Tobacco by 13 percent.

BAT shares have been trading on 11.5 times forecast 2009 earnings compared to Imperial Tobacco on 10.3 times.

(Editing by Greg Mahlich)