UPDATE 2-Kennametal loss, outlook top forecasts

* Q4 shr loss 13 cents vs loss 16 cents expected

* Q4 sales $386 mln, down 47 pct

* Sees FY 2010 shr 45 cents to 65 cents

NEW YORK, July 30 (Reuters) - Industrial tool maker Kennametal Inc (KMT.N) posted its second consecutive quarterly loss on Thursday and predicted weak demand would persist for the next two quarters, but results beat expectations.

The company said the industrial economy was close to a bottom, which could support its results in the second half of the fiscal year now under way, and set a profit target above Wall Street estimates.

Its quarterly net loss came to $33 million, or 45 cents per share, in the fiscal fourth quarter that ended June 30, versus a profit of $59.6 million, or 77 cents per share a year earlier.

Excluding charges, Kennametal lost 13 cents a share, which was 3 cents narrower than analysts expected.

Revenue fell 47 percent to $386 million, compared with Wall Street forecasts for sales of $406 million.

Latrobe, Pennsylvania-based Kennametal said it would likely post a wider loss in its first quarter than in the quarter just ended, but expects positive earnings in the second half of the fiscal year.

It expects fiscal 2010 earnings of 45 cents to 65 cents excluding charges. Analysts had estimated 2010 earnings at 42 cents a share, according to Reuters Estimates. (Reporting by Nick Zieminski; Editing by Derek Caney and Maureen Bavdek)