Kennametal Inc. (NYSE: KMT) reported that fiscal 2022 third-quarter sales rose 6% year-over-year to $512 million.
Earnings per diluted share (EPS) for the quarter were $0.42 and adjusted EPS was $0.47.
“We posted strong results again this quarter marked by solid operating leverage that delivered approximately 300 basis points of adjusted operating margin improvement,” said Christopher Rossi, president and CEO. “These results demonstrate disciplined execution of our Commercial and Operational Excellence initiatives and timely pricing actions to cover inflation.”
Operating income for fiscal 3Q was $53 million, or 10.4% of sales, compared to $40 million, or 8.2% of sales, in the prior-year quarter, the company said.
The increase in operating income was due primarily to “organic sales growth, favorable pricing, approximately $3 million of incremental simplification/modernization benefits and favorable product mix, partially offset by higher raw material costs of approximately $13 million and higher manufacturing costs resulting from COVID-19 absenteeism and higher depreciation,” Kennametal said.
Adjusted operating income was $58 million, or 11.4% margin, compared to $42 million, or 8.6% margin, in 2021’s fiscal 3Q.