The 2020 Mid-Year Economic Update_long

Kennametal Reports 6% 1Q Organic Growth

Kennametal, Latrobe, PA, reported first quarter 2007 sales of $543 million. This represents 6% organic sales growth offset by the net impact of acquisitions and divestitures, primarily the sale of J& L Industrial Supply. J& L outside sales were $65 million in the September quarter last year.


 


Profit for the first quarter was $30.3 million, up from $28 million in the same period a year ago.


 


Metalworking Solutions & Services Group (MSSG) continued to deliver growth led by year-over-year expansion in the aerospace, distribution and energy markets. The North American market remained stable; Europe has begun to show a modest recovery and Asia Pacific and India delivered strong double-digit growth.


 


In the September quarter, MSSG sales were up 3%on an organic basis. North American sales increased 1%. Asia Pacific and India sales grew 12% and 1%, respectively. Europe sales increased 2%.


 


Advanced Materials Solutions Group (AMSG) delivered growth in the September quarter, driven by favorable market conditions and the effect of acquisitions. Strong growth in the energy and mining markets continued to contribute to AMSG’s results.


 


AMSG sales grew 11% on an organic basis. Energy product sales were up 35%, mining and construction product sales were higher by 8% and engineered product sales increased 2%.


 


Outlook


Worldwide market conditions support Kennametal’s expectations of continued top-line growth during the balance of fiscal year 2007. Based on global economic indicators, the company believes that the North American market will remain solid. The company also believes that the market will improve and grow modestly in Europe, and that it will continue to be strong in developing economies. While there remain some uncertainties and risks related to the macroeconomic environment, fundamental drivers for global demand appear to be stable.


 


More details here.

Related Links:
Kennametal Buys Canadian Cutting Tools Manufacturer
Kennametal Opens New China Manufacturing Facility
Kennametal 2006 Sales Up 6%


 


More Breaking News

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.