UPDATE 2-Kennametal profit tops view, but outlook cloudy

* EPS ex-items 61 cents vs Street view 57 cents

* Revenue up 40 percent to $539 million (Adds details)

NEW YORK, July 29 (Reuters) - U.S. industrial toolmaker Kennametal Inc (KMT.N) reported better-than-expected quarterly profit but gave a fiscal 2011 earnings forecast that may be below Wall Street estimates as the global industrial economy slows.

Net earnings were $40.6 million, or 49 cents per share, in the fiscal fourth quarter ended June 30, compared with a loss of $33 million, or 21 cents per share, a year earlier.

Excluding restructuring and divestiture charges, Kennametal earned 61 cents per share in the quarter. Analysts, on average, expected 57 cents, according to Thomson Reuters I/B/E/S.

Revenue jumped 40 percent to $539 million, matching Wall Street forecasts. The company noted that its revenue rose from the prior quarter, marking the fourth such sequential improvement.

Kennametal, whose global rivals include Sandvik (SAND.ST) and Atlas Copco (ATCOa.ST), said it expected gradual improvement in global industrial production in its 2011 fiscal year, now under way, with slower growth in Europe. But it noted that global growth would be stronger in the first half of its fiscal year than in its second.

It forecast 2011 earnings per share between $1.85 and $2.15, excluding charges. Analysts expect the company to earn $2.12 per share, on average. (Reporting by Nick Zieminski; editing by John Wallace, Dave Zimmerman)