Cemented carbide producer Kennametal Inc., headquartered in Latrobe, Pennsylvania, USA, has reported an increase in sales of 10% to $2.837 billion in the fiscal year ended June 30, 2014. The sales increase was largely driven by the acquisition of the Tungsten Materials Business (TMB). Operating income was $263 million ($296 million in 2013).
“During the final June quarter, we saw accelerating growth and ongoing strength in our served industrial markets; however, certain sectors are still challenging,” stated Kennametal Chairman, President and CEO Carlos Cardoso. “We remain pleased with the progress related to the integration of our Tungsten Materials Business, which is currently ahead of schedule. We will continue to manage our business and control what factors we can.”
Excluding TMB, Industrial sales increased 11% in transportation, 9% in general engineering, partially offset by a 1% decrease in aerospace and defence. The transportation market benefited from increased demand in the light vehicle markets worldwide and general engineering increased due to continued demand from distribution channels. Sales increased in all geographies, up 15% in Asia, 6% in the Americas, and 4% in Europe.
For the year ahead Kennametal expects organic sales growth ranging from 3 to 5% with total sales growth between 5 and 7%.