kennametal inc (KMT) Key Developments
Carlos Cardoso to Retire as Chairman, President and CEO of Kennametal Inc., with Effect from December 31, 2014
Aug 19 14
Kennametal Inc. announced that Chairman, President and CEO Carlos Cardoso has decided to retire from the company effective on December 31, 2014. This will be a seamless leadership transition as the company's board of directors commences its search for Cardoso's successor, which members expect to complete before the end of the year. The search process will consider both internal and external candidates.
Kennametal Declares Quarterly Cash Dividend, Payable on August 26, 2014
Jul 31 14
Kennametal announced that its board of directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable on August 26, 2014 to shareowners of record as of the close of business on August 12, 2014.
Kennametal Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended June 30, 2014; Provides Earnings Guidance for the Year 2014; Provides Tax Guidance for the First Quarter Ending September 2014
Jul 31 14
Kennametal Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended June 30, 2014. For the quarter, the company's sales were $772 million, compared with $671 million in the same quarter last year. Sales increased by 15%, reflecting an 11% increase from the TMB acquisition and 5% from organic growth, partially offset by 1% decrease from fewer business days. Operating income was $78 million, compared with $91 million in the same quarter last year. Excluding nonrecurring charges and TMB results, adjusted operating income of $90 million was relatively flat compared with the prior year, as organic sales growth was offset by lower fixed cost absorption and mix in Infrastructure, and higher employment costs overall. EPS were $0.57, compared with the prior year quarter EPS of $0.76. Adjusted EPS were $0.75 in the current year period. Income from continuing operations before income taxes was $68.340 million against $81.719 million a year ago. Net income attributable to Kennametal was $45.455 million against $60.818 million a year ago. Adjusted net income was $60.186 million.
For the year, the company generated $272 million in cash flow from operating activities, compared with $284 million in the prior year. Net capital expenditures were $116 million and $80 million in fiscal years 2014 and 2013, respectively. The company realized free operating cash flow of $156 million compared with $204 million last year. Free operating cash flow was impacted by the acquisition of TMB. Sales were $2,837 million, compared with $2,589 million last year. Operating income was $263 million, compared with $296 million in the same period last year. Excluding nonrecurring charges and TMB results, adjusted operating income was $298 million. The current year operating income was favorably impacted by organic growth and raw material costs, offset by higher employment costs and a non-recurring inventory charge of $6 million. EPS were $1.99, compared with the prior year EPS of $2.52. Adjusted EPS was $2.50 in the current year. Income from continuing operations before income taxes was $228.809 million against $266.609 million a year ago. Net income attributable to Kennametal was $158.366 million against $203.265 million a year ago. Adjusted net income was $199.016 million.
For fiscal year 2015, the company's outlook reflects ongoing market uncertainties as well as limited visibility related to customer demand trends. The company expects organic sales growth ranging from 3 to 5%, with total sales growth between 5 and 7%. The company expects consolidated EPS to range from $2.90 to $3.20 in fiscal 2015. The company expects to generate cash flow from operating activities in the range of $290 million to $320 million in fiscal 2015. Based on anticipated capital expenditures of approximately $110 million to $120 million, the company expects to generate free operating cash flow in the range of $180 million to $200 million for fiscal year 2015. Effective tax rate for 2015 is forecasted to be between 26% and 27%.
And additionally, the company is expecting the September quarter will actually have a higher tax rate than the full year. The year-over-year increase in the tax rate is partly driven by a more unfavorable geographic mix in fiscal 2015.
Kennametal to Invest $5 Million
Jul 28 14
Kennametal has announced that it will expand its operations in Greenfield, adding 70 new jobs and $4.65 million worth in private investment including $3.4 million in equipment and renovations to its plant at 34 Sanderson St. The move, announced that would more than double the staff at Kennametal, which has a staff of 63 now. The company bought the old Greenfield Tap & Die.
Kennametal Inc. Presents at Jefferies 2014 Global Industrials Conference, Aug-14-2014 11:00 AM
Jul 24 14
Kennametal Inc. Presents at Jefferies 2014 Global Industrials Conference, Aug-14-2014 11:00 AM. Venue: Grand Hyatt, 109 E. 42nd St., New York, New York, United States. Speakers: Carlos M. Cardoso, Chairman, Chief Executive Officer and President.