Kennametal sees first quarterly consolidated organic growth in over two years

March 21, 2017

Kennametal Inc, South Carolina, USA, has reported results for its fiscal 2017 second quarter ended December 31, 2016, which saw sales of $488 million, compared with $524 million in the same quarter 2015. Operating income was $24 million, compared to an operating loss of $234 million in the same quarter last year.

“The second quarter results reflect positive performance from our growth and cost reduction initiatives,” stated Ron De Feo, Kennametal President and CEO. “Total company organic sales in the quarter grew 2%, marking the first quarterly consolidated organic growth in over two years.”

Organically, Kennametal Industrial grew 4%, Widia 5%, and Infrastructure experienced no growth versus the prior year. The adjusted gross profit margin increased 260 basis points and the adjusted operating expense decreased 90 basis points, resulting in an improvement of 350 basis points to the adjusted operating margin.

The company has stated that its adjusted operating income was $36 million, compared to $18 million in the prior year quarter. The increase in adjusted operating income reflects incremental restructuring benefits, higher absorption and productivity and the positive effects of lower raw material costs and sales volume growth, partially offset by the negative impacts of unfavourable price and mix.

“There is much work to do however as we strive to simplify, modernise and energise this company. The progress we are making in lowering employment costs is generally on track and evident now in our run rates. We are at the beginning stages of product line simplification, and the End-to-End initiatives by product line are accelerating as we examine all our value streams for simplification and efficiency,” added De Feo.

www.kennametal.com

Recent issue of Powder Metallurgy review - your go-to resource to stay updated on the world of powder metallurgy and metal powders

In the latest issue of PM Review…

PM Review Spring 2023

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • GKN Powder Metallurgy: A strategic vision for the future of permanent magnets for EVs
  • Building trust in the Powder Metallurgy industry: The role of standardisation and an update on recent work by ISO/TC 119
  • High-volume powder production for Additive Manufacturing: SMS group’s continuous metal powder production process
  • Development of enhanced-performance PM brake pads for high-speed trains by Beijing Tianyishangjia New Material Corp., Ltd.
  • The START project: Creating a sustainable supply chain for green energy harvesting products by Powder Metallurgy
  • World PM2022: Reviewing three innovative methods for metal powder production

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

From the industry…

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
Download PDF
Share via
Copy link