Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported sales for fiscal 2013 ended June 30 of $2.6 billion, a 5.4 percent decrease compared to the same period a year ago, driven by an 8 percent organic decline, a 2 percent unfavorable effect from currency exchange and a 1 percent decline due to fewer business days, partially offset by a 6 percent increase from Stellite. Profit fell 33.8 percent for the manufacturer, to $203.3 million.
Sales in the fourth quarter were $671.4 million, a decrease of 9.2 percent compared to the same period a year ago, reflecting an 8 percent organic decline and a 1 percent unfavorable effect from currency exchange. Profit fell 29.3 percent to $60.8 million.
Industrial segment sales of $384 million for the quarter declined 9 percent from the prior-year quarter, reflecting an 8 percent organic decline and a 1 percent unfavorable effect from currency exchange. On an organic basis, sales declined 8 percent in general engineering, 7 percent in transportation and 6 percent in aerospace and defense. On a regional basis, sales declined approximately 12 percent in the Americas, 6 percent in Europe and 5 percent in Asia. Industrial segment operating income fell 26.3 percent to $56 million.
Infrastructure segment sales of $288 million declined 10 percent from 2012’s fourth quarter, driven by an 8 percent organic decline, a 1 percent decline from fewer business days and a 1 percent unfavorable effect from currency exchange. On an organic basis, sales declined by 12 percent in the energy and 6 percent in the earthworks markets. Energy sales continued to reflect low drilling activity in oil and gas. Earthworks sales remained weak globally due to depressed levels of underground coal mining activity. On a regional basis, sales decreased 11 percent in the Americas, 8 percent in Europe and 3 percent in Asia. Operating income fell 16.7 percent to $35 million.
