Posted July 29, 2010
Kennemetal sales up 40 percent
Kennametal Inc. reported fiscal 2010 fourth quarter sales were $539 million, compared with $386 million in the same quarter last year.
Sales increased 40 percent due to organic growth of 39 percent and a 1 percent favorable impact from foreign currency effects. Sales improved sequentially from the March quarter by 9 percent, representing the fourth consecutive quarter of sequential sales growth.
Earnings per diluted share of 49 cents compared with a prior year quarter reported loss per diluted share of 45 cents. Operating income was $61 million compared with an operating loss of $25 million in the same quarter last year.
"Our fiscal 2010 fourth quarter performance clearly reflects that we are realizing continuing sales growth and higher incremental margins," said Carlos Cardoso, Kennametal's chairman, president and chief executive officer.
The Metalworking Solutions & Services Group sales increased by 44 percent from the prior year quarter, driven by organic growth of 43 percent and favorable foreign currency effects of 1 percent. On an organic basis, sales in Latin America (66%), Asia Pacific (65%) and India (64%) all showed big increases. North America (42%) and Europe (34%) also reported organic sales gains.
