kennametal inc (KMT) Details
Kennametal Inc. manufactures and supplies tooling, engineered components, and advanced materials consumed in production processes worldwide. It offers standard and customized technologies for metalworking, such as metal cutting tools, tooling systems, and services, as well as materials, such as cemented tungsten carbide products, super alloys, coatings, and investment castings. The company’s metalworking tools are made of cemented tungsten carbides, ceramics, cermets, and super-hard materials. It also manufactures and markets a line of tool holders, tool-holding systems, and rotary-cutting tools by machining and fabricating steel bars and other metal alloys. In addition, the company produces compacts and metallurgical powders; products made from tungsten carbide or other hard materials that are used for custom-engineered and applications, including mining and highway construction; and engineered components and surface technology solutions with proprietary metal cladding capabilities, as well as process technology and materials that focus on component deburring, polishing, and effecting controlled radii. The company operates in two segments, Industrial and Infrastructure. The Industrial segment serves customers primarily in the aerospace, defense, transportation, and general engineering market sectors, as well as the machine tool industry; and offers its products and services for use in the manufacture of engines, airframes, automobiles, trucks, ships, and various types of industrial equipment. The Infrastructure segment serves customers in energy and earthworks sectors who support primary industries, such as oil and gas, power generation, food and beverage, chemicals, underground mining, surface and hard-rock mining, highway construction, and road maintenance. The company sells its products through direct sales force; network of independent distributors and sales agents; and Internet. Kennametal Inc. was founded in 1938 and is headquartered in Latrobe, Pennsylvania.
Last Reported Date: 08/13/12
Founded in 1938
kennametal inc (KMT) Top Compensated Officers
Chairman, Chief Executive Officer and Preside...
Total Annual Compensation: $933.0K
Chief Financial Officer and Vice President
Total Annual Compensation: $468.3K
Vice President and President of Business Grou...
Total Annual Compensation: $423.8K
Chief Marketing Officer and Vice President
Total Annual Compensation: $375.0K
Compensation as of Fiscal Year 2012.
Kennametal Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended March 31, 2013; Revised Earnings Guidance for the Fiscal 2013; Declares Quarterly Cash Dividend, Payable May 22, 2013
Apr 25 13
Kennametal Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2013. For the quarter, the company reported sales of $655,360,000 compared to sales of $696,411,000 for the same period a year ago. Operating income was $74,973,000 compared to $103,292,000 last year. Income from continuing operations before income taxes was $66,720,000 compared to $95,775,000 last year. Net income was $54,376,000 compared to $76,237,000 last year. Net income attributable to the company $53,916,000 or $0.67 per diluted share compared to $75,499,000 or $0.93 per diluted share last year. Operating income declined due to lower absorption of manufacturing costs related to reduced sales volume, as well as an ongoing inventory reduction initiative. Partially offsetting these effects, the company reduced operating expense with its continued cost discipline. Sales decreased by 6%, reflecting a 6% organic decline, a 5% unfavorable impact from fewer business days and a 1% unfavorable effect from currency exchange, partially offset by a 6% increase due to two months of revenues from Stellite. Adjusted sales were $594,151,000 compared to $673,853,000 last year. Adjusted operating income was $72,108,000 compared to $107,900,000 last year. Adjusted net income was $54,376,000 for the quarter period.
For the nine months, the company reported sales of $1,917,963,000 compared to sales of $1,997,030,000 for the same period a year ago. Operating income was $205,822,000 compared to $298,951,000 last year. Income from continuing operations before income taxes was $184,890,000 compared to $281,374,000 last year. Net income was $144,732,000 compared to $224,281,000 last year. Net income attributable to the company $142,447,000 or $1.76 per diluted share compared to $221,182,000 or $2.72 per diluted share last year. Sales decreased by 4%, driven by a 7% organic decline, a 3% unfavorable effect from currency exchange and a 2% decline due to fewer business days, partially offset by an 8% increase from Stellite. Operating income decreased primarily due to lower sales volume, lower absorption of manufacturing costs, related to reduced sales volume and an ongoing inventory reduction initiative, as well as unfavorable currency exchange. This decrease was partially offset by reduced operating expense achieved with cost control. Net cash flow from operating activities was $150,358,000 compared to $164,236,000 last year. Purchases of property, plant and equipment was $53,808,000 compared to $60,657,000 last year. Free operating cash flow was $98,313,000 compared to $107,976,000 last year. Adjusted return on invested capital (ROIC) was 10.8% as of March 31, 2013. Adjusted sales were $1,737,099,000 compared to $1,974,472,000 last year. Adjusted operating income was $194,679,000 compared to $303,559,000 last year.
The company also announced that its board of directors declared a quarterly cash dividend of $0.16 per share. The dividend is payable May 22, 2013 to shareowners of record as of the close of business on May 7, 2013.
The company adjusted its full-year outlook due to a slower than anticipated recovery in the company's served industrial end markets globally, as well as continued softness in road construction, underground mining, and oil and gas markets in the U.S. However, the company notes that its order rates have reflected a sequential increase over the prior quarter and expects continued modest improvement, primarily in its industrial end markets. The company now expects fiscal 2013 sales decline in the range of 5% to 6%, with organic sales decline ranging from 8% to 9%. Previously, the company had forecast total sales decline ranging from 2% to 4% with organic sales decline of 7% to 9%. Based on the revision, the company has reduced its EPS guidance for fiscal 2013 to range from $2.45 to $2.55, versus its previous expectation of $2.60 to $2.80. Included in this outlook is the accretive contribution of the Stellite acquisition, net of integration costs, which is now expected to range between $0.05 and $0.10 per share as compared to the previous range of $0.10 and $0.15 per share. The company now expects to generate cash flow from operations between $260 million and $280 million for fiscal 2013, compared with the previous range of $290 million to $325 million. Based on anticipated capital expenditures of approximately $90 million to $100 million, the company expects to generate between $170 million and $180 million of free operating cash flow for the full fiscal year, as compared to the previous range of $200 million to $225 million.
Kennametal Inc. and Kennametal Europe GmbH Enters Third Amended and Restated Credit Agreement
Apr 11 13
On April 5, 2013, Kennametal Inc. and Kennametal Europe GmbH entered into that certain amendment no. 2 to the third amended and restated credit agreement with Bank of America N.A., London Branch, Bank of America, N.A. and the lenders from time to time. The amendment amends the company’s third amended and restated credit agreement dated as of June 25, 2010, among the company, Kennametal Europe, Bank of America, N.A., London Branch, PNC Bank, National Association and JPMorgan Chase Bank, N.A., Citizens Bank of Pennsylvania and Bank of Tokyo-Mitsubishi UFJ Trust Company, Bank of America, N.A., and the other lenders identified therein, as amended by that certain amendment no. 1 to the third amended and restated credit agreement, dated as of October 21, 2011, among the company, Kennametal Europe, Bank of America, N.A., London Branch, Bank of America, N.A. and the several banks and other financial institutions or entities from time party. The credit agreement was set to terminate on October 21, 2016.