Kennametal Inc., headquartered in Latrobe, Pennsylvania, USA, has reported sales of $659 million for the company’s fiscal 2012 first quarter, compared with $529 million in the same quarter last year. Sales increased as a result of organic growth of 17 %, a 7% favourable impact from foreign currency effects and a favourable impact from more business days, stated the company.
A record operating income of $102 million compared with $58 million in the same quarter last year, was reported and the operating margin reached a first quarter record of 15.4% compared to the prior year previous quarterly record for adjusted operating margin of 11.7%. The improved margin was driven by higher sales volume and price realisation, continued focus on cost containment and incremental restructuring benefits, partially offset by higher raw material costs, stated the company.
Carlos Cardoso, Kennametal’s Chairman, President and Chief Executive Officer stated “Organic revenue growth of 17% for the quarter reflects ongoing customer demand on top of strong growth from the prior year quarter. For the September quarter, Kennametal again delivered record financial results, driven by increased sales volumes across our served end markets and geographies. At the same time, our company-specific initiatives provided additional sources of top-line growth and margin expansion during the period. This performance demonstrates that Kennametal’s global team continues to successfully execute our strategies, further strengthen our foundation and position the company to achieve higher levels of profitability and earnings.”
In fiscal year 2011, Kennametal state that its customers bought approximately $2.4 billion of Kennametal products and services, with more than 50% of these revenues coming from outside North America. The company employees some 11,000 people and does business in more than 60 countries.
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]