* Q2 profit reverses losses on sales gains, narrower forex
* Sales jump 30 pct on Smithfield takeover, Brazil growth
SAO PAULO, Aug 13 (Reuters) - Brazil's JBS, the world's largest beef producer, posted on Thursday a profit for the second quarter, reversing losses in the year-earlier period, because of a surge in sales and a sharp decline in losses on foreign exchange and other financial instruments.
Net income totaled 172.7 million reais ($94.2 million), compared with losses of 364.4 million reais a year earlier, JBS said in a securities filing.
The company, whose JBS USA unit filed last month to raise up to $2 billion in an initial public offering, said sales jumped 30 percent from a year earlier to 9.26 billion reais because of expansion in Brazil and after it included Smithfield Beef in the balance sheet.
JBS had net financial losses of 33.6 million reais in the quarter, compared with losses of 508.8 million reais in the second quarter of 2008.
The company said foreign exchange gains in the quarter totaled 554.5 million reais, compared with losses of 110.7 million reais a year earlier. Losses from derivatives and other instruments widened to 491 million reais from 339.5 million reais in the second quarter of 2008.
Earnings before interest, taxes, depreciation and amortization, a measure of cash generation known as EBITDA, rose 30.2 percent to 384 million reais. ($1=1.834 reais) (Reporting by Elzio Barreto, editing by Gerald E. McCormick)