Kennametal returns to profitability
Kennametal Inc. reported fiscal fourth quarter sales were $565 million compared with $521 million in the same quarter last year.
Sales increased by 8 percent, reflecting 12 percent organic growth, offset partially by a 2 percent decrease due to fewer business days and a 2 percent unfavorable currency exchange impact.
Net income of $25.6 million, or 30 cents per diluted share, compared to a loss of $66.1 million, or a loss of 83 cents, in the same period last year.
Widia segment sales of $47 million increased 10 percent from $43 million in the prior year quarter, driven by organic growth of 14 percent, offset partially by a 3 percent decrease due to fewer business days and an unfavorable currency exchange impact of 1 percent. Contributing to Widia organic growth are increasing demand in the U.S. energy markets in addition to channel partner development, in particular the development of national and regional distribution in Europe.
For the full year, sales decreased 2 percent to $2.05 billion, compared with $2.09 billion last year. Net income of $51.9 million, or 61 cents per diluted share, compared to a loss of $223.8 million, or $2.83 per share, last year.
"After re-organizing the company to allow positive transformation, we focused on simplifying the company, improving sales execution and cost reduction. We have made significant achievements in each of these areas," said executive chairman of the board, Ron De Feo.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
