Kennametal Inc. (NYSE: KMT), Latrobe, PA, reported sales for the second quarter ended Dec. 31, 2009, were $443 million, a decrease of 19% driven by an organic decline of 23%. Profit fell 61.9% to $5.97 million.
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Fiscal year to date, sales were $852 million, a decrease of 28% from the prior year period. The company recorded a loss of $2.95 million for the first half of the year, compared to profit of $51.1 million a year ago.
Metalworking Solutions & Services Group (MSSG) sales were $261.5 million in the fourth quarter, a decrease of 19% driven by an organic sales decline of 23%. Sequentially, sales increased by 13% as global industrial production continued to improve modestly. On a regional basis, India had a year-over-year organic sales increase of 5%. Europe and North America reported organic sales declines of 30% and 24%, respectively. Latin America and Asia Pacific also experienced year-over-year organic sales declines of 17% and 1%, respectively. MSSG operating income was flat compared to the prior year at $7 million.
Advanced Materials Solutions Group (AMSG) sales decreased 19% from the prior year quarter, driven by a 22% organic decline. The organic decline was primarily driven by lower sales in the engineered products business, as well as reduced demand for energy related products and capital equipment. Sequentially, sales increased by 2%. Operating income increased 54% to $30 million.
