UPDATE 1-Praxair cuts profit outlook due to demand slowdown

* Sees "substantial" slowdown in demand

* Sees Q4 EPS of 95 cents to $1.00, excluding charge

* Shares fall 1 percent in after-hours trading

SAN FRANCISCO, Dec 9 (Reuters) - Industrial gases supplier Praxair Inc cut its fourth-quarter profit outlook due to a substantial slowdown in demand and said on Tuesday it expects more customers to close plants this month, further reducing volumes.

Praxair is the largest industrial gases supplier in the Americas.

Praxair said it had already started cutting costs, reducing its workforce by 1,600 positions and closing underperforming and non-core product lines and businesses. This would result in a fourth-quarter charge of $120 million, but the moves will save $80 million next year and $100 million after that, it said.

The company also expects to take a $55 million charge related to a settlement in Brazil and increases in accruals reelecting recent developments for other cases.

Excluding the charges, the company now expects a fourth-quarter profit of 95 cents to $1.00 per share, which compares with 98 cents last year and a current average analyst estimate of $1.04, according to Reuters Estimates.

"New projects and new business applications are expected to offset this demand slowdown and a significant foreign-currency headwind," Praxair said in a statement.

Shares of Praxair fell 1 percent in extended trade to $56.36, after falling nearly 4 percent in regular trade. (Reporting by Braden Reddall; editing by Carol Bishopric)