Kennametal sales down 22 percent
Kennametal said sales for its fiscal second quarter were $524 million, compared with $676 million in the same quarter last year.
Sales decreased by 22 percent, reflecting a 12 percent organic decline due to weakening of our served end markets, a 6 percent unfavorable currency exchange impact and a 4 percent decline due to divestiture.
Operating loss was $234 million, compared with $334 million in the same quarter last year.
"We are clearly operating in an environment where some of our key end markets are under significant pressure. We continue to adjust our global operations to best manage through this challenging time. We are acting quickly in anticipation of continued headwinds in our fiscal year 2016," said Don Nolan, President and CEO.
Industrial segment sales of $311 million decreased 16 percent from $372 million in the prior year quarter due to organic decline of 9 percent and unfavorable currency exchange of 7 percent.
Infrastructure segment sales of $213 million decreased 30 percent from $304 million in the prior year quarter.
As a result in declines in industrial production indices, U.S. and China coal mining, as well as further reductions in oil and gas activity, the company has revised its fiscal 2016 outlook. Kennametal now expects fiscal 2016 total sales to decline in the range of 20 to 23 percent and organic sales to decline in the range of 10 to 13 percent.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
