FOR IMMEDIATE RELEASE:
CONTACT: Kelly Boyer
CONTACT: Lori Lecker
Kennametal Announces Fiscal 2019 Second Quarter Results:
Company posts strong earnings per share and margin expansion on eighth consecutive quarter of growth
Q2 FY19 Highlights
• Earnings per diluted share (EPS) of $0.66; adjusted EPS of $0.71
• Sales of $587 million, up 3 percent year-over-year with organic growth of 4 percent
• Operating margin improved 230 basis points
• Reaffirms fiscal 2019 outlook, including adjusted EPS of $2.90 - $3.20 per share
PITTSBURGH, (February 4, 2019) – Kennametal Inc. (NYSE: KMT) (the "Company") today reported results for its fiscal 2019 second quarter ended December 31, 2018, with EPS of $0.66, compared with $0.50 in the prior year quarter, and adjusted EPS of $0.71, compared with $0.52 in the prior year quarter.
“In the second quarter of fiscal 2019 we delivered strong earnings per share results, margin improvement year-over-year and the eighth consecutive quarter of sales growth,” said President and Chief Executive Officer, Chris Rossi. “These results reflect our continued transformation of Kennametal and the ongoing monetization of our growth and simplification/modernization initiatives. As we look ahead to the second half of our fiscal year and the continued execution of those initiatives, we are reaffirming our previous outlook for the year,” said Rossi.
Fiscal 2019 Second Quarter Key Developments
Sales were $587 million, compared with $571 million in the prior year quarter. Sales increased by 3 percent, driven by 4 percent organic growth and a 2 percent favorable business day effect, partially offset by a 3 percent unfavorable currency exchange effect. Sales grew in all three business segments.
In connection with the Company's simplification/modernization initiative, pre-tax restructuring and related charges were $2 million, or $0.02 per share, and incremental pre-tax benefits from simplification/modernization restructuring were approximately $3 million in the quarter. Annualized run-rate pre-tax benefits of approximately $12 million have been achieved in connection with the simplification/modernization initiatives.
The following information was filed by Kennametal Inc (KMT) on Monday, February 4, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.