Kennametal Prelim. Q1 Results Well Below Its Expectations; Cuts FY20 Guidance

(RTTNews) - Kennametal Inc. (KMT) reported preliminary first-quarter sales of approximately $518 million, down approximately 12 percent from prior year. Organic sales declined approximately 11 percent, for the quarter. Earnings per share is expected to be approximately $0.08 as reported and approximately $0.17 as adjusted. On average, 11 analysts polled by Thomson Reuters expect the company to report profit per share of $0.49, for the quarter. Analysts' estimates typically exclude special items.

"Our first quarter results are well below our expectations as market conditions deteriorated more significantly than we anticipated across all regions, and primarily in the general engineering, energy and transportation end markets," said Christopher Rossi, President and CEO.

For fiscal 2020, the company now expects adjusted earnings per share in a range of $1.70 - $2.10, down from previous outlook range of $2.80 - $3.20. Analysts expect the company to report profit per share of $2.81.

Fiscal 2020 organic sales are now projected to decline in a range of 9% to 5%. Previously, the company projected organic sale change between decline of 2% and increase of 2%.