UPDATE 2-Bilfinger turns to services as Q3 profit sinks

* Net profit drops 87 pct to 7 mln euros

* Mulls Australian IPO

* Keeps 2009 outlook

* To focus on higher-margin services

* Bilfinger shares up 8 pct

(Adds analyst's comment, background, shares)

By Greg Roumeliotis

AMSTERDAM, Nov 10 (Reuters) - German construction company Bilfinger Berger (GBFG.DE) reported a smaller-than-expected 87 percent drop in third-quarter net income on Tuesday and said it would move more into services, sending its shares up 8 percent.

Bilfinger also said it is exploring an initial public offering (IPO) for its Australian unit, following in the steps of rival Hochtief (HOTG.DE), which is looking to IPO its concessions unit. [ID:nL9414873]