Kennametal profit falls 43%, outlook for year reduced
Kennametal Inc. posted a 43 percent drop in profit for its second quarter ended Dec. 31 and reduced its guidance for sales and earnings for the rest of its year ending June 30.
Earnings for the Unity-based tooling and advanced materials manufacturer fell to $42 million, or 52 cents a share, from nearly $74 million, or 91 cents a share, a year earlier, the company said on Thursday.
Kennametal shares closed at $41.00, down $1.35 from Wednesday's close.
Sales slipped 1.4 percent to about $633 million in the October-December period from almost $642 million a year before. Sales declined from lower demand globally, especially in Asia, executives told analysts on a conference call.
“Continued soft demand and destocking plugged our general engineering market. Transportation was particularly slow in Europe due to the extended plant shutdowns in December at automotive manufacturers. And customers further delayed their projects in energy markets,” Chief Financial Officer Frank Simpkins told analysts.
For fiscal year 2013 ending June 30, the company projected earnings would range between $2.60 and $2.80 a share, down from previous guidance of $3.40 to $3.70 a share.
Kennametal said it expected sales would fall between 2 percent and 4 percent. It previously projected sales would grow between 3 percent and 6 percent. The projections include the contribution from the acquisition of Stellite, a U.K.-based maker of high-performance alloys-based metals in March.
Kennametal previously had expected demand would begin to rebound around January. “It now appears the recovery has been deferred for at least one, maybe two, quarters,” said Simpkins.
Thomas Olson is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or at email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Westinghouse in talks for potential $20B deal in Turkey
- 153-year-old Venango well pumps out oil, history
- Small retailers at intersection of social networks, foot traffic
- Woman on dating site looks too good to be true: How to vet that pic
- U.S. Steel reorganizes operating units
- Health care, gas drilling industries await Gov.-elect Wolf’s footprint
- Business Council for Peace program works to export profits, peace
- Toyota to begin selling 1st fuel cell vehicle, Mirai, in December
- In ‘StockCity,’ real investing like game
- Small businesses’ dilemma: Keep costly health care coverage or lose talented workers
- Highmark and UPMC feud over canceled physician contracts