- Reported LPS of $4.89; adjusted EPS of $0.52, excluding restructuring and related charges, and asset impairment charges
- Strong year-to-date free operating cash flow of $82 million
- Existing restructuring primarily related to TMB--Phase 1--on track for $50-$55 million savings
- New restructuring program — Phase 2 — expected to deliver $40-$50 million savings; important step to expand margins and improve shareholder returns
LATROBE, Pa., (January 29, 2015) – Kennametal Inc. (NYSE: KMT) today reported results for the fiscal second-quarter 2015, with loss per diluted share (LPS) of $4.89, compared with the prior year quarter earnings per diluted share (EPS) of $0.30. Adjusted EPS were $0.52 in the current quarter compared with $0.50 in the prior year quarter.
Kennametal President and Chief Executive Officer Don Nolan said, "I’m encouraged by the talent, technologies and innovation inside our company. They reflect the inherent potential we possess to generate value over the long-term. While the current weakness in our end markets adversely affected our results, and the nature and magnitude of the impairment charge is disappointing, they also illustrate many opportunities for improving our operations and business portfolio.”
“As attractive as our future may be, Kennametal also faces some serious challenges given that we have underperformed and missed investor expectations. It’s clear we have some immediate work to do to deliver better performance by driving organic sales growth, getting our portfolio right and aligning our cost structure accordingly. We are taking additional actions to further reduce our manufacturing footprint and administrative overhead with a newly announced restructuring initiative, Phase 2. These key priorities-portfolio, cost structure and core growth with an accountable, customer-focused culture-are central to developing a path forward that will maximize profitability and generate improved shareholder returns.”