Kennametal reports 2% sales drop in Q1-25
Kennametal Inc. reported results for its fiscal 2025 first quarter, which included a 2% sales decline – $482 million compared to $492 million in the prior year quarter.
"While we continue to generate strong cash flow from operations, softer market conditions in a number of our end markets have led sales to come in on the lower end of our expectations," said President and CEO Sanjay Chowbey. "We do, however, anticipate second quarter results in line with our historical sequential performance and we remain focused on the continued execution of the Value Creation Pillars we outlined last quarter: Delivering Growth, Continuous Improvement and Portfolio Optimization."
Metal cutting sales of $297 million decreased 4% from $308 million in the prior year quarter, reflecting an organic sales decline of 4% and an unfavorable currency exchange effect of 2%, partially offset by a favorable business days effect of 2%.
During the quarter, the company achieved incremental year-over-year restructuring savings of approximately $5 million from the previously announced action to streamline its cost structure. This action has delivered annualized run rate pre-tax savings of approximately $35 million. Restructuring and related charges of $1 million were recognized during the quarter in connection with the execution of this initiative compared to $4 million in the prior year quarter.
For the upcoming quarter, the company expects sales to be $480–$500 million; and foreign exchange is anticipated to be neutral compared to the second quarter of fiscal 2024.
For fiscal year 2025, the company says is expects sales to be $2.0 –$2.1 billion.
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