The 2020 Mid-Year Economic Update_long

Kennametal Sales Up 12% in 1Q

Industrial segment sales increased 12 percent from the prior year quarter.

Industrial tool manufacturer Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported sales for the first quarter ended Sept. 30 of $695 million, up 12 percent from the same period a year ago, reflecting increases of 10 percent from the Tungsten Materials Business (TMB) acquisition. Organic sales grew 1 percent.

Profit increased 4.4 percent to $39.5 million.

"September quarter sales growth was driven by ongoing demand strength in our industrial segment; however, our infrastructure business was challenged by continued weak conditions in underground mining and road construction, partially offset by modest improvement in the oil and gas sector," President and CEO Carlos Cardoso said. "We are pleased to have made significant progress in integrating the Tungsten Materials Business, and we are accelerating measures to reduce costs and improve efficiencies that should position Kennametal for improved profitability."

Industrial segment sales of $378 million increased 12 percent from the prior year quarter due to the TMB acquisition. Organic growth was 5 percent. On a regional basis, excluding TMB, sales increased approximately 8 percent in Asia, 7 percent in the Americas and 1 percent in Europe.

Infrastructure segment sales of $317 million increased 13 percent from the prior year. Organic sales declined 3 percent. On a regional basis, excluding TMB, sales decreased 10 percent in Europe and 7 percent in Asia, partially offset by a 2 percent increase in the Americas.

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