Kennametal quarterly profits plunge

Hurt by softening end markets for its general engineering, energy and transportation business, Kennametal Inc. said Monday its quarterly net income plunged $51 million compared to a year ago, and its earnings per share dropped 61 cents.

Kennametal’s net income for the quarter ending Sept. 30 fell to $7.4 million, from $58.4 million a year ago, on sales of $518.1 million, a 12% drop from $586.7 million for the same period a year ago. Earnings per share fell to 8 cents, compared to 69 cents in that same quarter in 2018.

The Pittsburgh-based company, with a corporate offices in Unity, late last month lowered its fiscal year outlook for an adjusted earnings of $1.70 per share to $2.10 per share, because of the softening in its key markets. Those projections for lower earnings reflects an anticipated delay in the global recovery in the transportation and energy end markets.

“Our first quarter performance was well below our expectations and necessitated a revised full year outlook that also reflects a delayed recovery in transportation and energy,” CEO Christopher Rossi said in a statement.

Kennametal said its restructuring actions, including shutting production at a German facility last month, are on track to deliver increased profitability beginning the first six months of next year. In addition to closing the facility in Germany, Kennametal announced plans to shutdown its Carbidie plant along Arona Road in Hempfield. That closing started last month with layoffs from its 60-person workforce, and is expected to be completed by the end of March.

Kennametal said it had plans to move production to the company’s newly modernized plant in Rogers, Ark.

Kennametal’s stock rose Monday to $34.49, up $1.78, or 5.4% at closing.