Menu
Posted April 26, 2017

Kennametal sales up 6 percent

Kennametal Inc. reported fiscal 2017 third quarter sales were $529 million, compared with $498 million in the same quarter last year.


Sales increased by 6 percent, driven by 5 percent organic growth and a 2 percent increase due to more business days, partially offset by a 1 percent unfavorable currency exchange impact.

Net income of $38.9 million, or 48 cents per share, compared to $16.0 million, or 20 cents in the same quarter last year.

"This quarter's results exceeded our expectations by almost every metric," said Ron De Feo, Kennametal president and CEO. "Simply stated, revenue grew and costs declined, reflecting continuing progress with the work we began nine months ago. Revenue grew 6 percent, of which 5 percent was organic growth, and every region grew. The Widia segment posted quarterly profit for the first time with an adjusted operating margin of 2.3 percent. The Industrial and Infrastructure segments posted adjusted operating margins of 15.1 percent and 12.3 percent, respectively. These are strong numbers, and we are pleased to see the improvements in both sales and margins this quarter."

Industrial segment sales of $289 million increased 6 percent from $274 million in the prior year quarte. Excluding the impact of currency exchange, sales increased approximately 18 percent in energy, 9 percent in general engineering, 6 percent in aerospace and defense and 3 percent in transportation.

Widia segment sales of $46 million increased 10 percent from $42 million in the prior year quarter, driven by organic growth of 9 percent and a 1 percent increase due to more business days. On a segment regional basis excluding the impact of currency exchange, sales increased 14 percent in Asia, 11 percent in the Americas and 3 percent in Europe.

Infrastructure segment sales of $193 million increased 6 percent from $181 million in the prior year quarter, driven by organic growth of 4 percent and a 2 percent increase due to more business days. Excluding the impact of currency exchange, sales increased by approximately 22 percent in energy, 3 percent in earthworks and 1 percent in general engineering. Key energy markets, particularly in North America, showed strong growth during the quarter with average quarterly land U.S. rig counts up 37 percent year-over-year. On a segment regional basis excluding the impact of currency exchange, sales increased 12 percent in Asia and 6 percent in the Americas, while Europe remained flat.

SPONSORED ADS