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Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported third-quarter sales of $655.4 million, a 6 percent decrease from the same period a year earlier, for the period ended March 31, 2103. Profit fell 28.7 percent to $54.4 million.
The quarter’s sales decrease reflects a 6 percent organic decline, a 5 percent unfavorable impact from fewer business days and a 1 percent unfavorable effect from currency exchange, partially offset by a 6 percent increase due to two months of sales from newly acquired Stellite.
Industrial segment sales of $374 million declined 11 percent from the prior-year quarter. The results reflect a 5 percent organic decline, a 5 percent unfavorable impact from fewer business days and a 1 percent unfavorable effect from currency exchange. On an organic basis, sales declined 12 percent in general engineering and 2 percent in transportation, while aerospace and defense sales grew 14 percent. On a regional basis, sales declined 12 percent in the Americas, 10 percent in Asia and 9 percent in Europe.
Infrastructure segment sales were $282 million, up 1 percent from the prior year. The increase was driven by 15 percent growth related to two months of revenues from Stellite, partially offset by an 8 percent organic decline and a 6 percent decline from fewer business days. On an organic basis, sales declined by 15 percent in the energy and 6 percent in the earthworks markets. On a regional basis including the organic growth of Stellite, sales decreased 18 percent in the Americas, 6 percent in Europe and remained relatively flat in Asia.
Infrastructure segment operating income was $32 million, compared with $34 million in the same quarter of the prior year. Stellite contributed $2.9 million of operating income in the current year quarter, compared with a net operating loss of $4.6 million in the prior year period.
For the first nine months, sales for Kennametal were $1.9 billion, a decrease of 4 percent compared to the same period a year earlier. Profit fell to $144.7 million.
The nine-month decrease in company sales was driven by a 7 percent organic decline, a 3 percent unfavorable effect from currency exchange and a 2 percent decline due to fewer business days, partially offset by an 8 percent increase from Stellite.