Kennametal Sales Down 2% in 1Q - Modern Distribution Management

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Kennametal Sales Down 2% in 1Q

Industrial segment sales fell 4 percent from the prior year quarter.
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Kennametal Inc. (NYSE: KMT), Latrobe, PA, today reported sales for the first quarter ended Sept. 30 of $620 million, down 2 percent from the same period a year ago. Organic sales fell 3 percent.

Profit fell 18 percent to $37.8 million.

"Due to our company-specific initiatives, Kennametal again delivered solid profitability this quarter even with persistent macroeconomic uncertainties," President and CEO Carlos Cardoso said. "More importantly, as the economic climate shows signs of improvement, we will accelerate our growth strategies to maximize revenues and earnings, as well as maintain our ongoing cost discipline."

Industrial segment sales of $338 million increased 1 percent from the prior year quarter due to the favorable impact of more business days. Organic growth was flat. On a regional basis, sales increased approximately 6 percent in Europe, remained relatively flat in the Americas and decreased by 5 percent in Asia. WIDIA reflected an increase year-over-year in all geographic regions.

Infrastructure segment sales of $282 million declined 4 percent from the prior year. Organic sales declined 6 percent. On a regional basis sales grew 3 percent in Europe, offset by a 7 percent decrease in Asia as well as the Americas.

During the quarter, the company acquired Comercializadora Emura S.R.L. and certain related entities (Emura), based in La Paz, Bolivia, and secured related material sourcing agreements.

The company also signed a definitive agreement to acquire ATI's Tungsten Materials Business for $605 million. The acquisition is aligned with the company's growth strategy and positions the company to further diversify its portfolio.

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