6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Special charges of $286.8 million were included in the year's results related primarily to the SFAS No. 142 impairment charge of $250.4 million specific to certain businesses acquired in 1997 as part of Greenfield Industries. Prior-year results included special charges of $22.5 million.
Fourth quarter results
For the company's fiscal fourth quarter, Kennametal reported sales of $402.9 million declined 9 percent, versus $442.5 million last year. Excluding special items, net income was $21.4 million, a 9 percent decrease compared with net income of $23.5 million last year. Reported net income was $15.4 million against net income of $14.3 million in the same quarter last year.
The net unfavorable impact of acquisitions and divestitures essentially offset the benefit of additional workdays, and the foreign exchange impact was negligible. Average daily sales for the June 2002 quarter improved 1% sequentially versus the March quarter, compared to a typical sequential decline in the low single-digits.
Operating expense for the quarter was reduced 2 percent, to $100.5 million, excluding special charges.
The current quarter included special charges of $9.0 million associated with the completion of previously announced restructurings and the divestiture of Strong Tool. Prior-year results included special charges of $13.9 million related to the divestiture of ATS, the J&L business improvement plan and work force reductions.