Kennametal Organic Sales Down 6% in 3Q - Modern Distribution Management

Log In

Kennametal Organic Sales Down 6% in 3Q

Declines were partially offset by two months sales from newly acquired Stellite.
Author
Date

Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported third-quarter sales of $655.4 million, a 6 percent decrease from the same period a year earlier, for the period ended March 31, 2103. Profit fell 28.7 percent to $54.4 million.

The quarter’s sales decrease reflects a 6 percent organic decline, a 5 percent unfavorable impact from fewer business days and a 1 percent unfavorable effect from currency exchange, partially offset by a 6 percent increase due to two months of sales from newly acquired Stellite.

Industrial segment sales of $374 million declined 11 percent from the prior-year quarter. The results reflect a 5 percent organic decline, a 5 percent unfavorable impact from fewer business days and a 1 percent unfavorable effect from currency exchange. On an organic basis, sales declined 12 percent in general engineering and 2 percent in transportation, while aerospace and defense sales grew 14 percent. On a regional basis, sales declined 12 percent in the Americas, 10 percent in Asia and 9 percent in Europe.

Infrastructure segment sales were $282 million, up 1 percent from the prior year. The increase was driven by 15 percent growth related to two months of revenues from Stellite, partially offset by an 8 percent organic decline and a 6 percent decline from fewer business days. On an organic basis, sales declined by 15 percent in the energy and 6 percent in the earthworks markets. On a regional basis including the organic growth of Stellite, sales decreased 18 percent in the Americas, 6 percent in Europe and remained relatively flat in Asia.

Infrastructure segment operating income was $32 million, compared with $34 million in the same quarter of the prior year. Stellite contributed $2.9 million of operating income in the current year quarter, compared with a net operating loss of $4.6 million in the prior year period.

For the first nine months, sales for Kennametal were $1.9 billion, a decrease of 4 percent compared to the same period a year earlier. Profit fell to $144.7 million.

The nine-month decrease in company sales was driven by a 7 percent organic decline, a 3 percent unfavorable effect from currency exchange and a 2 percent decline due to fewer business days, partially offset by an 8 percent increase from Stellite.

Share this article

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.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, 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 MDM.com
  • 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

1

article
left

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 mdm.com
  • 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

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.