* Says now sees 2014 sales flat year on year * Cites weak glass, non-ferrous businesses * Previously saw 3 percent sales growth * Q2 sales 436.8 mln euros vs 445.2 mln yr-earlier * Says still sees 2014 operating margin of 8-9 pct (Adds quote, details on industrials businesses, Q3 outlook) FRANKFURT, Aug 5 (Reuters) - Austrian fireproof materials maker RHI AG RHIV.VI cut its sales outlook for 2014 on Tuesday, saying weak demand at its glass and non-ferrous materials businesses had hurt its industrials division in the second quarter. "No sustainable recovery is recognisable among important drivers of the glass industry, for example in the construction industry," RHI said in a statement. It said the situation of the flat glass industry was "critical", with further capacity being taken out of the market in the second quarter, although it said new projects and a backlog of repairs pointed to an improvement in the overall glass market toward the end of 2014. Lower metal prices hurt sales from non-ferrous materials. RHI, whose products also include materials for furnaces in the steel industry, said it now expected full-year revenues to stagnate this year, compared with a previous outlook for growth of about 3 percent. In the second quarter through the end of June, group sales came to 436.8 million euros ($586.3 million), which was up 8.6 percent from the first quarter but down from 445.2 million reported in the year-earlier period. RHI in May had forecast sales would pick up after a steep quarter-on-quarter drop in first-quarter sales as political tensions depressed output from its key steelmaker customers and a weak market environment for new construction hurt its industrial division. ID:nL6N0O01IT RHI said it expected third-quarter revenues to be about flat from the second quarter. Its underlying operating profit rose 39 percent year-on-year to 37.7 million euros and its profit margin widened to 8.6 percent from 6.1 percent thanks to improved capacity utilisation at its steel and industrial businesses. RHI said it still expected its 2014 operating profit margin to improve to between 8 and 9 percent from 7.2 percent in 2013. (Reporting by Maria Sheahan; Editing by Michael Shields) ((maria.sheahan@thomsonreuters.com)(+49 69 7565 1286)(Reuters Messaging: maria.sheahan.thomsonreuters.com@reuters.net)) Keywords: RHI RESULTS