Kennametal Q1 Profit Rises; Cuts FY15 EPS View - Quick Facts

(RTTNews) - Kennametal Inc. (KMT) posted higher first-quarter net income attributable to the company of $39.49 million, or $0.49 per share, compared with $37.8 million, or $0.48 per share, a year ago. The current year quarter included restructuring and related charges of $0.07 per share, while the prior-year quarter included acquisition-related charges of $0.01 per share. TMB contributed $0.07 per share in the quarter.

Sales were $695 million for the quarter, compared with $620 million in the same quarter last year. Sales grew by 12 percent, reflecting increases of 10 percent from the TMB acquisition, 1 percent from organic growth and 1 percent due to favorable currency exchange.

Looking ahead, Kennametal is updating its outlook due to weaker economic conditions anticipated for the remainder of fiscal 2015. Key factors include softer customer demand in the Eurozone, lower drilling activity in the oil and gas sector, as well as a continued decline in underground mining production levels.

As a result, the company has lowered its per-share earnings view for fiscal 2015 in the range of $2.80 to $3.00, compared with its prior expectation of $2.90 to $3.20. Analysts are looking for earnings of $3.00 per share for the year.

The company now expects fiscal 2015 total sales growth in the range of 2 to 4 percent, with organic sales growth of 1 to 3 percent. Earlier, the company had forecast total sales growth in the range of 5 to 7 percent, with organic sales growth of 3 to 5 percent.

Further, the board declared a quarterly cash dividend of $0.18 per share, payable November 25, 2014 to share owners of record as of the close of business on November 11.