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Posted November 5, 2019

Kennametal sales down 12 percent

Kennametal reported fiscal 2020 first quarter sales of $518 million decreased 12 percent from $587 million in the prior year quarter.


The results reflected an 11 percent organic sales decline and 2 percent unfavorable currency exchange effect, partially offset by a 1 percent favorable business day effect.

Net income of $6.5 million, or 8 cents per diluted share, compared to income of $56.7 million, or 69 cents, in the same period last year.

"As announced on October 21st, we experienced significantly slower market conditions across all regions and in our end markets, primarily general engineering, energy and transportation. As a result, our first quarter performance was well below our expectations and necessitated a revised full year outlook that also reflects a delayed recovery in transportation and energy," said Christopher Rossi, president and CEO.

Industrial sales of $280 million decreased 13 percent from $321 million year-over-year, driven by organic sales decline of 11 percent and a 2 percent unfavorable currency exchange impact.

Widia sales of $44 million decreased 9 percent from $49 million year-over-year, driven by organic sales decline of 10 percent and a 1 percent unfavorable currency exchange impact, partially offset by a favorable business day effect of 2 percent.

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