Last $31.48 USD
Change Today -0.36 / -1.13%
Volume 1.0M
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kennametal inc (KMT) Snapshot

Open
$31.57
Previous Close
$31.84
Day High
$31.57
Day Low
$30.62
52 Week High
05/1/14 - $49.24
52 Week Low
01/29/15 - $27.63
Market Cap
2.5B
Average Volume 10 Days
1.1M
EPS TTM
$2.49
Shares Outstanding
79.1M
EX-Date
02/6/15
P/E TM
12.7x
Dividend
$0.72
Dividend Yield
2.32%
Current Stock Chart for KENNAMETAL INC (KMT)

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kennametal inc (KMT) Details

Kennametal Inc. manufactures and supplies tooling, engineered components, and advanced materials consumed in production processes worldwide. The company operates in two segments, Industrial and Infrastructure. It offers standard and customized technologies for metalworking, such as metal cutting tools, tooling systems and services, and materials, including cemented tungsten carbide products, super alloys, coatings, and investment castings. It also manufactures and markets a line of tool holders, tool-holding systems, and rotary-cutting tools by machining and fabricating steel bars and other metal alloys; and tungsten metallurgical powders, heavy alloys, and carbide products. In addition, the company produces compacts and metallurgical powders; products made from tungsten carbide or other hard materials that are used for custom-engineered and applications, including mining and highway construction; and engineered components and surface technology solutions with proprietary metal cladding capabilities, as well as process technology and materials that focus on component deburring, polishing, and effecting controlled radii. The Industrial segment serves customers primarily in the aerospace, defense, transportation, and general engineering market sectors, as well as the machine tool industry; and offers its products and services for use in the manufacture of engines, airframes, automobiles, trucks, ships, and various types of industrial equipment. The Infrastructure segment serves customers in energy and earthworks sectors who support primary industries, such as oil and gas; power generation; food and beverage; chemicals; underground, and surface and hard-rock mining, highway construction, and road maintenance. The company sells its products through direct sales force; network of independent distributors and sales agents; and Internet. Kennametal Inc. was founded in 1938 and is headquartered in Latrobe, Pennsylvania.

13,521 Employees
Last Reported Date: 08/13/14
Founded in 1938

kennametal inc (KMT) Top Compensated Officers

Chief Financial Officer and Vice President
Total Annual Compensation: $625.1K
Chief Information Officer and Vice President
Total Annual Compensation: $427.0K
Chief Marketing Officer and Vice President
Total Annual Compensation: $396.1K
Vice President of Special Projects
Total Annual Compensation: $444.0K
Vice President of Integrated Supply Chain & L...
Total Annual Compensation: $318.7K
Compensation as of Fiscal Year 2014.

kennametal inc (KMT) Key Developments

Kennametal Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2014; Reports Goodwill and Other Intangible Asset Impairment Charge for the Second Quarter Ended December 31, 2014; Revises Earnings Guidance for the Fiscal Year 2015; Provides Tax Rate, Capex and Free Operating Cash Flow Guidance for 2015

Kennametal Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2014. For the second quarter, the company reported sales of $675.631 million against $689.936 million a year ago. Operating loss was $333.771 million against operating income of $49.716 million a year ago. Loss from continuing operations before income taxes was $343.954 million against income from continuing operations before income taxes of $40.823 million a year ago. Net loss attributable to the company was $388.302 million against net income attributable to the company of $24.209 million a year ago. Diluted loss per share was $4.89 against diluted earnings per share of $0.30 a year ago. On adjusted basis, the company’s sales were $675.631 million against $689.936 million a year ago. Operating income was $61.159 million against $61.463 million a year ago. Net income was $41.356 million against $40.119 million a year ago. Dilute earnings per share was $0.52 against $0.50 a year ago. sales decreased by 2%, reflecting decreases of 4% due to unfavorable currency exchange and a 2% organic decline, offset partially by a 3% increase from acquisition and a 1% increase due to more business days. Adjusted operating results in the current period were driven by restructuring benefits and lower employment costs, offset by organic decline and unfavorable mix in infrastructure, and unfavorable currency exchange. Adjusted return on invested capital (roic) was 7.9% as of December 31, 2014 and reflects the impact of the goodwill and other intangible asset impairment charges of $382 million, offset partially by increased debt in the near term from recent acquisitions. For the six months, the company reported sales of $1,370.572 million against $1,309.743 million a year ago. Operating loss was $272.751 million against operating income of $108.545 million a year ago. Loss from continuing operations before income taxes was $289.330 million against income from continuing operations before income taxes of $91.961 million a year ago. Net loss attributable to the company was $348.814 million against net income attributable to the company of $62.046 million a year ago. Diluted loss per share was $4.40 against diluted earnings per share of $0.78 a year ago. On adjusted basis, the company’s sales were $1,370.572 million against $1,390.743 million a year ago. Operating income was $129.624 million against $121.390 million a year ago. Net income was $86.400 million against $78.730 million a year ago. Dilute earnings per share was $1.09 against $0.99 a year ago. Net cash flow from operating activities was $135.322 million against $84.617 million a year ago. Purchases of property, plant and equipment was $54.672 million against $48.804 million a year ago. Sales increased by 5%, driven by 7% growth from acquisition and 1% increase due to more business days, partially offset by a 2% decline due to unfavorable currency exchange and 1% organic decline. For the December quarter, the company performed an interim impairment test of goodwill and indefinite-lived intangible assets for its infrastructure segment. This preliminary test was undertaken in view of the recent abrupt change in the global energy market, coupled with the severe and persistent decline in the earthworks markets. The test resulted in an estimated non-cash pre-tax goodwill and other intangible asset impairment charge of $377 million, or $5.24 per share. The valuation will be completed in the company's fiscal third quarter. The company also recorded a non-cash impairment charge of $5 million or $0.04 per share for an infrastructure technology asset. Given the significant impairment charges, infrastructure portfolio actions will be the initial focus. The company revised earnings guidance for the fiscal year 2015. For the year, the company announced that due to current high levels of uncertainty in the global economy, visibility is very limited regarding demand in some of the company's served end markets and ultimately will affect the company’s sales, earnings and cash flow. For fiscal 2015, the company revised its outlook to reflect a weaker economic environment for the remainder of the fiscal year. The company expects fiscal 2015 total sales to decline in the range of 6% to 7% and organic sales to decline in the range of 4% to 5%. Previously, total sales growth was projected to be in the range of 2% to 4%, with organic sales growth of 1% to 3%. Based on the revised forecast, the company expects adjusted EPS for fiscal 2015 to range from $1.90 to $2.10, compared with the previous range of $2.80 to $3.00. The primary driver for the change in earnings relates to a further reduction to infrastructure segment sales, due to a rapid decline in the oil and gas markets, as well as continued weak demand from the mining industry. The industrial segment is also expected to be negatively impacted by further weakening in the eurozone. In addition, foreign exchange is expected to be a notable headwind related to recent currency fluctuations, particularly the USD to EUR exchange rate.  The company expects to generate cash flow from operations between $270 million and $295 million for fiscal 2015, compared with its previous outlook of $280 million to $310 million. Effective tax rate, excluding special charges for fiscal 2015, is forecasted to be approximately 23% to 24%. Based on anticipated capital expenditures of approximately $110 million to $115 million, the company expects to generate between $160 million and $180 million of free operating cash flow for the fiscal year.

Kennametal Inc. Declares Quarterly Cash Dividend Payable on February 25, 2015

Kennametal Inc. announced that its board of directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable on February 25, 2015 to shareholders of record as of the close of business on February 10, 2015.

Kennametal Inc. to Close Facility in Alabama

Kennametal Inc. will close its facility in Grant, Ala. The company said it will relocate operations to other Kennametal locations in North America to better align its supply chain footprint with customer needs. Kennametal took over the plant's operations in November 2013 when it purchased Allegheny Technologies Inc.'s tungsten materials business. About 93 employees work at the facility. The plant, which manufactures rods, wear carbide, insert blanks, flow tubes and other engineered products, is expected to close in September 2015. No other facilities are expected to be affected by the closure.

 

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KMT

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Valuation KMT Industry Range
Price/Earnings 15.9x
Price/Sales 0.9x
Price/Book 1.3x
Price/Cash Flow 13.4x
TEV/Sales 0.5x
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