Kennametal Inc., Latrobe, PA, reported fiscal 2009 fourth quarter sales of $386 million, down 47% over the prior year same period. The company posted a loss of $33 million for the quarter, compared to profit of $59.6 million a year ago. Organic sales fell 43%.
For fiscal year 2009, sales were $2.0 billion, down 23% from fiscal year 2008. The fiscal year net loss was $119.7 million, compared to profit of $167.8 million the prior year. Organic sales fell 21%.
"Fiscal 2009 was the most challenging year in our company’s 70-year history," said Carlos Cardoso, president and CEO. The company continued to implement certain restructuring plans to reduce costs and improve efficiencies during the quarter. On June 30, Kennametal completed the sale of its high speed steel drills, related product lines and assets.
Metalworking Solutions & Services Group sales decreased by 52% from the prior year quarter, driven by an organic sales decline of 45%.
Global industrial production remained extremely weak and substantially below the prior year continuing the further downturn in industrial activity experienced in the March quarter. Consequently, demand in most market sectors remained at very low levels.
On a regional basis, Europe and North America reported organic sales declines of 47% and 46%, respectively, for the June quarter. Latin America, India and Asia Pacific also experienced organic sales declines of 44%, 43% and 37%, respectively.
Advanced Materials Solutions Group sales decreased 37% during the June quarter, driven by a 38% organic decline. The organic decline was primarily a result of lower sales in the engineered products business, as well as reduced demand for energy related products and surface finishing machines and services.
Kennametal Inc. is a global supplier of tooling, engineered components and advanced materials consumed in production processes.
