Kennametal sales climb 9 percent
Kennametal Inc. said its fiscal second quarter 2014 sales increased 9 percent to $690 million compared with the same quarter last year.
The increase reflected a 2 percent organic increase and a 7 percent increase from the Tungsten Materials Business acquisition.
Net income was $24.2 million, or 30 cents per share, compared with $42.1 million, or 52 cents, in last year's second quarter. Results were impacted by acquisition-related charges and restructuring charges.
"Kennametal reported solid profitability although margin expansion lagged top-line growth this quarter," said Kennametal chairman, president and chief executive officer Carlos Cardoso. "With the resumption of growth in our industrial markets, we are dedicating greater resources to serving customers as demand increases. It remains our goal to ensure sustainable growth and expand our through-the-cycle margin levels, just as we demonstrated during the prior growth cycle."
Industrial segment sales of $371 million increased 10 percent from $336 million in the prior year quarter. This increase was due to 6 percent organic growth and 5 percent growth related to the acquisition of TMB, partially offset by a 1 percent decline due to fewer business days. Excluding TMB, sales increased by 8 percent in transportation and 7 percent in general engineering, 5 percent in energy and 2 percent in aerospace and defense. Energy sales reflected increased activity in industrial applications. Sales increased in all geographies. On a regional basis sales increased 12 percent in Asia, 7 percent in Europe and 2 percent in the Americas.
Infrastructure segment sales of $319 million increased 7 percent from $297 million in the prior year.
INDUSTRIAL SUPPLY MAGAZINE
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