TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Kennametal posts 29 percent drop in profit

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By Thomas Olson
Thursday, April 25, 2013, 11:06 a.m.
 

High-tech manufacturer Kennametal Inc. on Thursday posted a 29 percent drop in quarterly earnings and warned that business would be pressured by deeper deterioration in the coming months in the global markets it serves.

The Unity-based company, which makes machining tools for the manufacturing industry, reported a profit of $54 million, or 67 cents a share, for the quarter ended March 31 compared with $75 million, or 93 cents a share, the year earlier.

Kennametal, which employs about 13,000, serves customers in 60 countries in aerospace, energy, infrastructure, industrial production and other sectors.

Sales in the January-March quarter were hurt by “another difficult period for industrial and infrastructure activity globally,” CEO Carlos Cardoso said in a statement.

“It wasn't a bad quarter, but they are fighting some headwinds,” said Walt Liptak, managing director of Global Hunter Securities in Chicago. He cited continued weakness in European markets, a stubborn recovery of China's economic momentum and a mixed picture for demand in North America.

Kennametal projects that sales for the fiscal year ending June 30 will fall between 5 percent and 6 percent, a wider drop than the 2 percent to 4 percent decrease it had projected previously.

Sales last quarter decreased 6 percent to $655 million, compared with $696 million a year ago. Financial results included a $27 million gain from the sale of the company's stake in a subsidiary in India. Kennametal retains a 75 percent interest.

Kennametal stock closed up $1.52 on Thursday at $38.91.

Thomas Olson is a staff writer for Trib Total Media. He can be reached a 412-320-7854 or at tolson@tribweb.com.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. First Niagara sets aside $45 million
  2. Rule to close coal royalty loophole
  3. Chevron puts $20M into educating, training Appalachian workers
  4. High pollution levels found near Ohio gas wells
  5. EQT Corp. boosts profits despite lower gas prices
  6. PUC approves Columbia Gas pipeline extensions program for homeowners
  7. Stocks rise broadly on earnings; Amazon sinks
  8. Large-scale batteries are integral in shift to renewable energy
  9. Natrona Bottling Co. keeps soda pop operation focused on craft, taste
  10. Energy Spotlight: Steve Anthos
  11. BNY Mellon profits up in third quarter
Subscribe today! Click here for our subscription offers.