Kennametal earnings sharply lower
Kennametal's earnings were sharply lower in the fourth quarter despite a 15 percent increase in sales.
Fiscal 2014 fourth-quarter net income fell by 25 percent to $45.4 million, or 57 cents per share, from $60.8 million, or 76 cents, in the same period last year. The lower earnings resulted from acquisition and related restructuring charges.
Sales increased 15 percent to $772 million, compared to $671 million last year.
The sales gain reflected an 11 percent increase from the Tungsten Materials Business (TMB) acquisition and 5 percent from organic growth, partially offset by 1 percent decrease from fewer business days.
"During the June quarter, we saw accelerating growth and ongoing strength in our served industrial markets; however, certain sectors are still challenging," said Kennametal chairman, president and CEO Carlos Cardoso. "Although we have yet to realize the full potential of our operating leverage, we continued to elevate our base performance and protect our profitability. Since necessary investments in sales and other customer-facing functions were made in fiscal 2014, we will manage a tighter cost structure as we move ahead."
For the full year, sales increased 10 percent to $2.8 billion, compared with $2.5 billion last year. Net income for the year declined 22 percent to $158.4 million, or $1.99 per share, compared to $203.3 million, or $2.52, in fiscal 2013.
Fourth-quarter industrial segment sales of $416 million increased 15 percent from $363 million in the prior year quarter.
Infrastructure segment sales of $357 million increased 16 percent from $309 million in the prior year.
For fiscal 2015, the company expects organic sales growth ranging from 3 to 5 percent, with total sales growth between 5 and 7 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.
