Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported fiscal 2010 third-quarter sales were $493 million, up from $424 million in the prior-year period. Sales were up 16 percent due to an organic increase of 11 percent and a 5 percent favorable impact from foreign currency impacts.

Profit was $10.2 million, compared with a loss in the prior-year quarter.

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"We are pleased with our results for the fiscal 2010 third quarter as they clearly demonstrate the positive effects of our strategies," said Carlos Cardoso, president and CEO. "We are encouraged that growth in industrial activity is continuing across a range of end markets and geographies."

Sales improved sequentially by 11 percent, representing the third consecutive quarter of sequential sales growth. The improvement in sales was driven by continued expansion in industrial activity in the majority of Kennametal's end markets and all geographies.

Metalworking Solutions & Services Group (MSSG) sales increased by 19 percent from the prior-year quarter, driven by organic growth of 13 percent and favorable foreign currency effects of 6 percent. Sequentially, sales increased by 12 percent as global industrial production continued to improve in all regions. This represents the third consecutive quarter of sequential sales growth for MSSG. Regionally, on an organic basis, India and Asia Pacific had sales increases of 64 percent and 45 percent, respectively. North America, Europe and Latin America each reported organic sales increases of 7 percent compared with the prior year quarter.

Advanced Materials Solutions Group (AMSG) sales increased 13 percent from the prior year quarter, driven by 9 percent organic growth and 4 percent favorable foreign currency effects. The organic increase was primarily driven by higher sales of mining and construction products, as well as increased demand for energy related and engineered products. Sequentially, sales increased by 11 percent, driven by higher sales in all AMSG end markets, except for capital equipment.

Year-to-date, sales were $1.3 billion compared to $1.6 billion in the same period last year. Sales decreased 20 percent on an organic basis, partially offset by a 2 percent favorable impact from foreign currency effects and a 1 percent increase from a business acquisition made in the prior fiscal year.

Profit year-to-date was $7.3 million, compared with a loss in the prior-year period.

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