The 2020 Mid-Year Economic Update_long

Kennametal to Sell Non-Core Businesses

First quarter sales down 20% in fiscal 1Q.

Industrial tool manufacturer Kennametal Inc. (NYSE: KMT), Latrobe, PA, has agreed to sell several of its non-core businesses related to certain castings, steel-plate fabrication and deburring for an aggregate price of $70 million. The combined annual revenue of the businesses is $220 million.

Kennametal also reported sales for the fiscal first quarter ended Sept. 30 of $555 million, down 20 percent from the same period a year ago, reflecting a 13 percent organic decline due to weakening in served end markets and a 7 percent unfavorable currency exchange impact.

The company reported a loss of $6.2 million for the quarter, compared to a profit of $39.5 million the prior year.

First-quarter industrial segment sales of $313 million decreased 17 percent from the prior-year quarter due to unfavorable currency exchange of 9 percent and organic decline of 8 percent. Infrastructure segment sales of $242 million decreased 24 percent due to 19 percent organic sales decline and 5 percent unfavorable currency exchange.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.