(Corrects prior 2010 EPS forecast in paragraph 2 to 30 cents-50 cents from 20 cents-50 cents)

Diversified U.S. manufacturer Textron Inc reversed a year-earlier loss and sharply raised its 2010 earnings forecast, citing the payoff of an aggressive cost-cutting plan.

The world's largest maker of corporate jets said on Wednesday that it expects a full-year profit, excluding special charges, of 55 cents to 65 cents per share, higher than its previous forecast of 30 cents to 50 cents.

Its second quarter earnings came to $82 million, or 27 cents per share, compared with a net loss of $58 million, or 22 cents per share, a year earlier.

Revenue rose 3.7 percent to $2.71 billion percent as demand for business aircraft remained weak.

The Providence, Rhode Island-based company, which also makes Bell helicopters and EZ-Go golf carts, is coping with weak demand for many of its products, but has boosted earnings by cutting jobs and scaling back its finance arm.

Textron shares have fallen about 7 percent so far this year, a time period when the Standard & Poor's capital goods industry group <.GSPIC> has risen almost 1 percent.

(Reporting by Scott Malone; Editing by Derek Caney)