The 2020 Mid-Year Economic Update_long

Kennametal Organic Growth at 3% in 1Q

Kennametal Inc., Latrobe, PA, reported sales increased in the first quarter by 9% to $669 million. Organic sales growth was 3%. Profit was $35 million, flat from the previous quarter.
 
Our September quarter performance again demonstrates the effectiveness of our strategies to further balance Kennametal across geographies and end markets," said President and CEO Carlos Cardoso. Cardoso also attributed the quarter's results to a better geographic balance, with 54% of the company's revenues coming from outside North America.
 
Metalworking Solutions &Services Group sales increased by 6% during the September quarter, driven primarily by favorable foreign currency effects which increased sales by 6 percent. Increased workdays added a further 2 percent which was offset by ...

Kennametal Inc., Latrobe, PA, reported sales increased in the first quarter by 9% to $669 million. Organic sales growth was 3%. Profit was $35 million, flat from the previous quarter.
 
Our September quarter performance again demonstrates the effectiveness of our strategies to further balance Kennametal across geographies and end markets,” said President and CEO Carlos Cardoso. Cardoso also attributed the quarter’s results to a better geographic balance, with 54% of the company’s revenues coming from outside North America.
 
Metalworking Solutions &Services Group sales increased by 6% during the September quarter, driven primarily by favorable foreign currency effects which increased sales by 6 percent. Increased workdays added a further 2 percent which was offset by the impact of divestitures.
 
On a global basis, industrial activity was mixed. Activity in certain industry and market sectors, such as aerospace, defense and energy, remained positive while others, such as automotive and other durable goods, were somewhat weaker.
 
Regionally, organic sales growth was led by Asia Pacific at 22 percent followed by Latin America, India and Europe at 7 percent, 6 percent and 2 percent, respectively. This offset a reduction in North American organic sales of 8 percent.
 
Advanced Materials Solutions Group sales increased 15 percent during the September quarter, driven by 10 percent organic growth, 3 percent from favorable foreign currency effects and 2 percent from more workdays. Organic sales increased on stronger mining and construction sales and higher energy-related sales, slightly offset by lower sales of engineered products and surface finishing machines and services.  

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