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Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported sales for the first quarter ended Sept. 30, 2012, were $629 million, a year-over-year decline of 4 percent. Profit fell 35 percent to $46.4 million.
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The decrease in sales was driven by a 7 percent organic decline, 5 percent unfavorable effect from currency exchange, and 1 percent from fewer business days than last year's first quarter. These declines were partially offset by a 9 percent increase from the Stellite acquisition.
"Although market conditions make organic growth more challenging in the near-term, we remain highly focused on cost control to deliver mid-teens EBIT margin for the full fiscal year," said Carlos Cardoso, president and CEO.
Industrial segment sales of $353 million declined 15 percent from the prior year quarter, reflecting a 9 percent organic decline and a 6 percent unfavorable effect from currency exchange. On a regional basis, sales declined approximately 13 percent in the Americas, 7 percent in Europe and 1 percent in Asia.
Infrastructure segment sales of $276 million increased 15 percent from the prior year, driven by 25 percent growth from the Stellite acquisition, partially offset by a 5 percent organic decline, 4 percent unfavorable effect from currency exchange and 1 percent from fewer business days. On a regional basis excluding the impact of the Stellite acquisition, sales decreased approximately 11 percent in the Americas and 7 percent in Europe, while sales were 5 percent higher in Asia.