Kennametal posts 29 percent drop in profit
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 firstname.lastname@example.org.
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.
- Union leaders warn Post-Gazette newsroom of possible layoffs
- Covestro leader MacCleary finds stability amid change
- Mall stores required to open for Thanksgiving
- German financial giant Allianz SE slashes coal investments
- Black Friday loosens its hold on the holiday season
- U.S. companies in 1st profits slump since 2009
- Pa. unemployment rate dips to 5.1% for October
- Coke had hand in shaping nonprofit health group, emails show
- Treasury toughens rules against tax inversions
- Powder metals fabricator Atlas Pressed Metals diversifies appeal to customers
- Feds upgrade GDP’s growth