* Sees recession dampening demand in H2

* Q2 adj EPS $0.40 vs est $0.06

* Raises full-year cash flow estimates

* Shares soar 29 pct (Recasts; adds analysts' estimates; updates share movement)

BANGALORE, Sept 24 (Reuters) - American Greetings Corp (AM.N: Quote, Profile, Research) posted a 10-fold jump in quarterly profit that trumped Wall Street estimates, helped by lower expenses and improved inventory management, sending its shares up as much as 29 percent to their highest in more than a year.

However, the company said the effects of the economic slowdown could hurt its business in the next two quarters.

The recession could dampen demand in the second half of this fiscal year, Chief Executive Zev Weiss said on a conference call with analysts. [ID:nWNAB3012]

The company also said it remained cautious about general economic conditions in Britain, which might put pressure on its international performance in this fiscal year.

The company raised its forecast of cash flow from operations to $160 million for the year ending in February 2010, up from its prior view of $105 million to $115 million.