UPDATE 2-Kennametal to cut 1,200 jobs, warns on quarter

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BOSTON, Jan 12 (Reuters) - Kennametal Inc (KMT.N) gave a quarterly profit outlook below analysts' expectations, and the diversified manufacturer said it planned to cut 1,200 jobs as it scrambles to respond to a deepening global recession.

Shares of the maker of industrial tools fell 6.6 percent on the news.

Kennametal said on Monday that it expected to report earnings of 34 cents per share, excluding a 14-cent restructuring charge, for the second quarter ended Dec. 31.

Analysts on average expected profit of about 48 cents per share, according to Reuters Estimates.

Kennametal said it expected organic sales -- a measure that factors out the effects of acquisitions and unit sales -- to be down 10 percent.

The Latrobe, Pennsylvania-based company attributed the sales decline to its customers' efforts to cut their inventories.

The job cuts represent roughly 8 percent of Kennametal's workforce.

Kennametal shares were down $1.35 at $19.04 in early New York Stock Exchange trading. Over the past year, they have declined 37 percent, a modestly milder drop than the 41 percent slide of the Standard & Poor's 1500 capital goods industry group index .15GSPIC. (Reporting by Scott Malone; Editing by Lisa Von Ahn)