Kennametal Inc., the market leader for cemented carbide metalworking tools and wear parts in North America and second in Europe and worldwide, reported its full year (fiscal 2011) results on July 28, including a record fourth quarter. Strong organic growth of 28% saw sales increase from $1,951 million last year to $2,579 million in 2011. Operating income was $322 million compared with operating income of $93 million in the same period last year.
Kennametal Chairman, President and CEO Carlos Cardoso stated, “The final quarter results demonstrate that we are capitalising on top-line growth to achieve higher levels of profitability”. Sales in the last quarter to June 2011 were $694 million, an increase of $155 million or 29%, compared with $539 million in the same quarter last year. Operating income was $115 million compared with $61 million in the same quarter last year.
“We expect organic sales growth to be 10 to 12% in the year ahead compared with fiscal 2011 and total sales growth to be 9 to 11%. This is in line with our goal of growing at least two times the rate of increase in global industrial production”, said Cardoso.