Kennametal sales down 2% in fiscal first quarter 2014
October 28, 2013
Kennametal Inc. based in Latrobe, Pennsylvania, USA, has issued its results for the fiscal first-quarter 2014 (July 1 to September 30, 2013) which show sales down by 2% to $620 million compared with the same quarter in 2012. Operating income was reported at $59 million compared with $64 million in 2012.
During the quarter, the company acquired the operating assets of Comercializadora Emura S.R.L. and certain related entities (Emura), based in La Paz, Bolivia, and secured related material sourcing agreements. Emura is the region’s principal operation engaged in collection, testing, processing and exporting tungsten ore material, and is a long-standing supplier to Kennametal.
Kennametal also announced during the quarter that it has signed a definitive agreement to acquire ATI’s Tungsten Materials Business for $605 million. The acquisition is aligned with the company’s growth strategy and positions the company to further diversify its portfolio, stated the report.
“Due to our company-specific initiatives, Kennametal again delivered solid profitability this quarter even with persistent macroeconomic uncertainties,” stated Kennametal Chairman, President and Chief Executive Officer Carlos Cardoso. “More importantly, as the economic climate shows signs of improvement, we will accelerate our growth strategies to maximize revenues and earnings, as well as maintain our on-going cost discipline.”
“Also, our recently announced agreement to acquire ATI’s Tungsten Materials Business will provide excellent growth opportunities. This represents a winning business combination that enhances our talent base, provides complementary strategic assets and further balances our portfolio.”
Kennametal has revised upwards its fiscal 2014 sales growth forecast to the range of 5 to 7% (from the previous 4 to 6%), with organic sales growth ranging from 4 to 6%.