Kennametal Sales Decrease 2% in 2Q

Company reports loss of $388 million for the quarter.

Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported sales for the second quarter ended Dec. 31, 2014, of $676 million, a decrease of 2 percent from the previous year, with organic sales also decreasing 2 percent. The company reported a loss of $388 million, as compared to a profit of $24.2 million the same quarter a year ago.

"As attractive as our future may be, Kennametal also faces some serious challenges given that we have underperformed and missed investor expectations," said CEO Don Nolan. "It's clear we have some immediate work to do to deliver better performance by driving organic sales growth, getting our portfolio right and aligning our cost structure accordingly.  We are taking additional actions to further reduce our manufacturing footprint and administrative overhead with a newly announced restructuring initiative … ."

Industrial segment sales of $372 million increased only slightly from the prior year quarter due to organic growth of 2 percent. On a regional basis sales increased approximately 14 percent in Asia and 3 percent in the Americas, offset partially by a decrease of 1 percent in Europe.

Infrastructure segment sales of $304 million decreased 5 percent from the prior year, driven by organic sales decline of 8 percent. On a regional basis, sales decreased 14 percent in Europe, 9 percent in Asia and 2 percent in the Americas.

Year to date, Kennametal reported sales of $1.4 billion, up 4.6 percent from the same period a year ago. The company reported a loss of $348.8 million, as compared to a profit of $62 million the first six months of fiscal 2014.

About the Author
Recommended Reading
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.


articles left

Want more Premium content from MDM?

Subscribe today and get:

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

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to
  • 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



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
  • 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.

Register for full access