Kennametal, Latrobe, PA, reported first quarter 2007 sales of $543 million. This represents 6% organic sales growth offset by the net impact of acquisitions and divestitures, primarily the sale of J& L Industrial Supply. J& L outside sales were $65 million in the September quarter last year.
Profit for the first quarter was $30.3 million, up from $28 million in the same period a year ago.
Metalworking Solutions & Services Group (MSSG) continued to deliver growth led by year-over-year expansion in the aerospace, distribution and energy markets. The North American market remained stable; Europe has begun to show a modest recovery and Asia Pacific and India delivered strong double-digit growth.
In the September quarter, MSSG sales were up 3%on an organic basis. North American sales increased 1%. Asia Pacific and India sales grew 12% and 1%, respectively. Europe sales increased 2%.
Advanced Materials Solutions Group (AMSG) delivered growth in the September quarter, driven by favorable market conditions and the effect of acquisitions. Strong growth in the energy and mining markets continued to contribute to AMSG's results.
AMSG sales grew 11% on an organic basis. Energy product sales were up 35%, mining and construction product sales were higher by 8% and engineered product sales increased 2%.
Outlook Worldwide market conditions support Kennametal's expectations of continued top-line growth during the balance of fiscal year 2007. Based on global economic indicators, the company believes that the North American market will remain solid. The company also believes that the market will improve and grow modestly in Europe, and that it will continue to be strong in developing economies. While there remain some uncertainties and risks related to the macroeconomic environment, fundamental drivers for global demand appear to be stable.