Kennametal reports net loss
Kennametal reported a fiscal 2016 fourth-quarter net loss of $66.1 million, or 83 cents per share, compared with net income of $21.1 million, or 26 cents, in the prior year.
Sales were $521 million, compared with $638 million in the same quarter last year. Sales decreased by 18 percent, reflecting a 9 percent decline due to divestiture, a 9 percent organic sales decline and a 1 percent unfavorable currency exchange impact, offset partially by a 1 percent increase due to more business days.
Industrial segment sales of $329 million decreased 8 percent from $358 million in the prior year quarter. Infrastructure segment sales of $193 million decreased 31 percent from $280 million in the prior year.
For the full year, sales declined 21 percent to $2.09 billion, compared with $2.64 billion last year. A net loss of $225.9 million compared to a loss of $373.9 million in 2015.
The company also announced restructuring plans and job layoffs for 2017.
"In 2017, we are implementing a more robust sales and marketing strategy while continuing to work on the cost structure. The announced restructuring plans are expected to yield incremental savings of approximately $31 million by fiscal year-end 2017," said Ron De Feo, Kennametal president and CEO. He said the workforce reduction initiative with expected costs of $80-$95 million should reduce employment by 1,000, resulting in an annual run rate savings of $100-$110 million by fiscal year-end 2017.