* Q2 operating profit surges more than four times
* Raises full-year outlook by 12 pct to 200 bln yen
* Analyst: can expect another upward revision
* Shares end down 0.92 pct before results (Recasts with executive, analyst comments)
TOKYO, Oct 28 (Reuters) - Komatsu Ltd raised its full-year operating profit forecast above the market consensus on Thursday as booming demand and price hikes are offsetting the negative impact of the rising yen.
Further strengthening in the yen, which hit a 15-year high against the dollar earlier this week, is a cloud on the horizon for Japanese manufacturers.
But Komatsu, which competes with its U.S. giant Caterpillar Inc, is cashing in on surging demand for excavators and other earth-moving equipment, helped by spending on housing infrastructure projects in emerging countries.
"Komatsu generated very strong figures, but I think you can expect another upward revision. The firm's demand outlook appears conservative," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management in Tokyo.
Brisk demand for its products makes it easy for the world's No.2 construction machinery maker to raise prices.
"The current dollar/yen rate is tough for us. But we can absorb the adverse influence by raising product prices," Komatsu CFO Kenji Kinoshita told a news conference.
Komatsu lifted its operating profit forecast for the full year to March by 12 percent to 200 billion yen ($2.45 billion), higher than a consensus forecast of 184.7 billion yen in a poll of 19 analysts by Thomson Reuters I/B/E/S.
For the July-September second quarter, the Tokyo-based company posted an operating profit of 49.8 billion yen, compared with 11.5 billion yen a year earlier.
Sales of construction machinery to China in the April-September first half of the business year rose 46 percent to 152.8 billion yen, with revenue gaining 55 percent to 181.9 billion yen in other parts of Asia.
Caterpillar also reported stronger-than-expected quarterly earnings last week and raised its full-year forecast.
Komatsu's shares closed down 0.9 percent at 1,937 yen before the results announcement, outperforming a 0.2 percent drop in the benchmark Nikkei average. ($1=81.69 Yen) (Reporting by Nobuhiro Kubo; Editing by Michael Watson)