Kennametal Announces Fourth Quarter and Fiscal 2019 Results; Outlook for Fiscal 2020
Earnings Per Diluted Share (EPS) $0.74 in the quarter; $2.90 for the year, improved by $0.48 for the full year
Adjusted EPS $0.84 in the quarter; $3.02 for the year, improved by $0.37 for the full year
Achieved approximately $40 million in additional simplification/modernization benefits year-over-year
FY20 and FY21 Restructuring Actions, including proposed high-cost plant closures, expected to generate $60 to $70 million of savings upon completion
FY20 organic sales outlook largely flat with adjusted EPS of $2.80 to $3.20
Current market conditions may affect timing of FY21 targets; FY21 structural cost-out actions on track
PITTSBURGH, (August 5, 2019) – Kennametal Inc. (NYSE: KMT) (the "Company") today announced fourth quarter and fiscal 2019 results. For the fourth quarter, the Company reported EPS of $0.74, compared with $0.83 the prior year quarter. The current quarter adjusted EPS was $0.84, compared with $0.87 in the prior year quarter.
For fiscal 2019, the Company reported EPS of $2.90, compared with $2.42 in the prior year. Adjusted EPS was $3.02 in the current year, compared with $2.65 in the prior year.
“We posted strong margin improvement in fiscal 2019 on moderate organic sales growth, reflecting increasing progress on our simplification/modernization initiatives,” said Christopher Rossi, President and Chief Executive Officer. “A key milestone of those initiatives was the recent announcement of the intended closure of four of our facilities, which will drive further structural benefits and improve operational efficiency. We also continued to gain traction on our growth initiatives in general engineering and aerospace, with aerospace growing by double digits for the sixth consecutive quarter.”
Rossi continued “Against this backdrop of year-over-year progress, we saw increased softening in most of our end-markets late in the year, which put pressure on our fourth quarter results. Our expectation is that this challenging macro environment will continue into the first half of fiscal 2020. Nevertheless, we will stay focused on the things we can control and execute our plan to improve long-term profitability.”
Fiscal 2019 Fourth Quarter Key Developments
Sales were $604 million compared with $646 million in the same quarter last year. Sales decreased by 7 percent, driven by 4 percent unfavorable currency exchange impact, 2 percent organic decline and a 1 percent decrease due to fewer business days.
The following information was filed by Kennametal Inc (KMT) on Monday, August 5, 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-K Annual Report Accession Number: 0000055242-19-000019 Submitted to the SEC: Tue Aug 13 2019 2:58:41 PM EST Accepted by the SEC: Tue Aug 13 2019 Period: Sunday, June 30, 2019 Industry: Machine Tools Metal Cutting Types