Kennametal Inc. this week announced its net income rose to $70.1 million for the quarter ending March 31, up $17 million from the same quarter a year ago, even through sales fell by $10.7 million to $597.2 million.
The Pittsburgh-based industrial toolmaker, which has a corporate campus in Unity, earned 83 cents per share for the quarter, an increase from 62 cents a share from a year ago. It was the 10th consecutive quarter of year-over-year earnings per share growth, Kennametal said.
Although sales dropped 2% compared to the same quarter a year ago, sales from business units operating a year ago rose by 3%. The drop in sales was attributed, in part, to a 4% unfavorable currency exchange rate, the company said.
Kennametal, which operates on a July 1-June 30 fiscal year, tightened its fiscal 2019 outlook to an adjusted earnings range of $3 to $3.10 per share, which was within its previous range.
Kennametal CEO Chris Rossi said in an earnings statement that its organic sales grew, despite increasingly tough comparables. The company’s end markets remained generally positive, except for the automotive industry, Rossi said.
Kennametal is predicting it will save $35 million to $40 million by end of fiscal 2020 on its restructuring associated with simplification and modernization of its business. The restructuring, however, is expected to cost between $55 million to $65 million, pre-tax, through this fiscal year and next year.
Kennametal’s shares fell 50 cents in trading Monday to close at $40.27.