Kennametal Sales Grow 40% in 4Q Fiscal 2010

Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported fiscal 2010 fourth quarter sales of $539 million, up from $386 million in the same quarter last year. Sales were up 40 percent due to organic growth of 39 percent, and a 1 percent favorable impact from foreign currency effects.

Profit was $40.9 million for the fourth quarter.

Metalworking Solutions & Services Group (MSSG) sales increased by 44 percent from the prior-year quarter, driven by organic growth of 43 percent.

On an organic basis, sales in Latin America, Asia Pacific and India increased 66 percent, 65 percent and 64 percent, respectively. North America and Europe reported organic sales increases of 42 percent and 34 percent, respectively, compared with the prior-year quarter.

Sequentially, sales increased by 8 percent as global industrial production continued to improve. MSSG operating income was $45 million compared with an operating loss of $29 million for the same quarter of the prior year.

Advanced Materials Solutions Group (AMSG) sales increased 34 percent from the prior-year quarter, driven by 33 percent organic growth and 1 percent favorable foreign currency effects. The organic increase was primarily driven by higher sales of mining and construction products, as well as increased demand for energy related and engineered products. Sequentially, sales increased by 11 percent, driven by better performance in all AMSG end markets.

AMSG operating income was $43 million, compared with $14 million in the same quarter of the prior year.

Sales were $1.9 billion in fiscal 2010 compared with $2 billion in the previous fiscal year. Sales decreased 8 percent on an organic basis, partially offset by a 1 percent favorable impact from foreign currency effects and a 1 percent increase from a business acquisition made in the prior fiscal year.

Profit was $46.4 million for the fiscal year.