Earnings Roundup: Global Industrial, Kennametal, CAT, AMETEK, Schneider

As evidenced by the latest round of quarterly earnings reports, some industrial distributors and manufacturers still see year-to-year growth.
We’re in the midst of the latest quarterly earnings reporting period for publicly-traded companies for the April-June period. For most companies, that was their fiscal second quarter. Below, find the key sales and profit figures for top distributors and manufacturers in the markets MDM typically covers:

We’re in the midst of the latest quarterly earnings reporting period for publicly-traded companies for the April-June period. For most companies, that was their fiscal second quarter. Below, find the key sales and profit figures for top distributors and manufacturers in the markets MDM typically covers:

Global Industrial

Ecommerce-based industrial distributor Global Industrial Company reported its 2022 second-quarter financial results on Aug. 2, which showed considerable year-over-year gains in revenue and profit.

The Port Washington, New York-based company posted 2Q total sales of $319 million — a company quarterly record — which was up 16.8% year-over-year. Average daily sales increased 16.9%.

Global Industrial’s 2Q gross margin of 35.5% slid from the 36% of a year earlier, while operating profit of $31 million and margin of 9.6% grew from the $25 million and 9.1% of a year earlier.

The company’s 2Q net profit of $23 million ticked up from the $22 million of a year earlier.

“Gross margin remains healthy, but pulled back from the record performance in the first quarter of the year, reflecting the impact of freight fuel surcharges, select promotional activities, as well as the flow through of some higher cost inventor,” commented Barry Litwin, Global Industrial CEO.

Kennametal

Tooling supplier Kennametal reported its 2022 fourth-quarter and full-year financial results on Aug. 1, which showed a modest increase in 4Q sales that were a deceleration from the first half of the year.

The Pittsburgh, Pennsylvania-based company posted 4Q sales of $530 million, up 2.7% year-over-year, with organic sales up approximately 7%. The company said currency had a 4% headwind impact. Kennametal’s 4Q operating profit was $63 million on 11.8% margin, compared with $61 million and identical margin a year earlier; 4Q net profit of $43 million topped 2021’s $35 million.

By business segment in 4Q:

  • Metal Cutting sales of $316 million increased 1.3% year-over-year, with organic sales up approximately 7%, largely offset by a 6% currency exchange headwind. Operating profit of $34 million and margin of 10.8% increased from $33 million and 10.6% margin a year earlier.
  • Infrastructure sales of $214 million increased 4.9% year-over-year, with organic sales up approximately 7%, partially offset by a 2% currency exchange headwind. Operating profit of $29 million and margin of 13.7% improved from $28 million and 13.5% a year earlier.

For the full year, Kennametal had total fiscal 2022 sales of $2.01 billion, up 9.3% from 2021. Organic sales increased approximately 11%, partially offset by a 2% currency exchange headwind. Operating profit of $218 million on margin of 10.8% both more than doubled the $102 million and 5.5% margin of a year earlier.

Full yet net profit of $145 million dwarfed 2021’s $54 million.

Caterpillar

Heavy equipment maker Caterpillar reported its 2Q 2022 financial results on Aug. 2. The figures were led by an 11% year-over-year sales increase to $14.2 billion, while operating margin of 13.6% slid 0.3 percentage points. CAT said the increase was due to price realization and higher sales volume, partially offset by unfavorable currency impacts related to the euro, Australian dollar and Japanese yen.

North American 2Q sales of $6.77 billion increased 18% year-over-year.

CAT’s total 2Q net profit of $1.67 billion increased 18.4% year-over-year.

Ametek

Berwyn, Pennsylvania-based electronic instruments and electromechanical devices manufacturer AMETEK reported that 2Q 2022 earnings were up 9% over last year to a record $1.51 billion.

In 2Q 2022, operating income increased 15% to a record $364.8 million, and operating margins were 24.1%, up 130 basis points from second quarter 2021 margins, AMETEK said.

“AMETEK delivered excellent results in the second quarter with record sales, operating income and adjusted earnings per share,” said David A. Zapico, AMETEK chairman and CEO. “Our results were ahead of expectations driven by strong organic sales growth and continued impressive operating performance. Additionally, end demand remains strong and broad-based with excellent organic orders growth in the quarter. Given this performance, we are raising our earnings guidance for the full year.”

The company’s Electronic Instruments Group sales in 2Q were $1.03 billion, up 10% from the second quarter of 2021. Electromechanical Group sales were a record $486.3 million, up 7% from the same period a year ago.

Schneider Electric

Schneider Electric reported its second-quarter and first-half 2022 earnings, including a 10% year-over-year revenue increase for 2Q.

The company reported quarterly revenues of $8.64 billion (USD) in 2Q “despite lockdowns in China and impact from Russia,” Schneider said.

Revenue in 2Q for its Energy Management segment rose 12%, while revenue for Industrial Automation was up 6%. For the first six months of 2022, the company reported adjusted net income of $1.83 billion (USD).

“In the first six months of 2022 we faced a very disturbed environment: the war in Ukraine entailing sanctions on Russia, the resurgence of COVID-19, particularly in China in the second quarter, tensions on supply chain as a collateral of a continued strong demand, and inflation on costs,” said Jean-Pascal Tricoire, chairman and CEO.

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