On May 1, Pittsburgh-based industrial distributor Kennametal announced its fiscal third-quarter results for 2023’s January-March period, reporting sales of $536 million.
Kennametal’s 3Q sales increased 5% year-over-year, driven by 8% organic sales growth, according to a news release. 3Q sales were negatively impacted by an unfavorable currency exchange effect of 4%.
Year-to-date net cash flow from operating activities increased 36% to $126 million, driven primarily by working capital changes including improved inventory levels, partially offset by lower net income. Year-to-date free operating cash flow (FOCF) grew 78% to $60 million, also driven by improved inventory levels, as well as proceeds received from the disposal of property, plant and equipment.
“We delivered year-over-year organic sales growth and strong cash flow in the quarter and continued the successful execution of our strategic initiatives, while navigating macroeconomic headwinds, such as a slower recovery in China and high inflation,” Kennametal President and CEO Christopher Rossi said in the release. “Driven by these results and the continued confidence in our strategic initiatives, we are raising our full year sales and EPS outlook.”