Kennametal Inc., Latrobe, PA, reported its third quarter 2006 sales were up 6% to $631 million versus the same period last year. Organic growth was 12%. Net income was $33 million compared with $31 million in the same period last year, up 7%.
Third-quarter performance reflects the impact of previously announced divestitures. Kennametal sold its UK-based high speed steel business, and announced it would sell J& L Industrial Supply to MSC Industrial Direct.
Metalworking Solutions & Services Group sales were up 7% on volume and price, excluding acquisitions, divestitures and foreign exchange. North American cemented carbide and high-speed steel grew 9% and 6% respectively. Europe sales increased 8%. Rest of the world sales grew 6%. North American consumer products declined 6%.
Advanced Materials Solutions Group delivered top-line growth of 24% in the current quarter. The underlying markets in Mining, Construction and Energy remain strong for Kennametal with 22% growth in Construction and 18% rise in sales for Energy and Engineered Products. Electronics is the only market showing year-over-year decline, with a 7% drop.
J& L Industrial Supply sales grew 12% in the third quarter.
For the first nine months of fiscal year 2006, sales were up 6% to $1.8 billion compared to the same period in the prior year, including 9% organic growth. Net income was $92 million compared with $82 million in the prior year, up 13%.
For more details on Kennametal's third-quarter earnings, click here.