Kennametal Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2012; Revised Earnings Guidance for Fiscal 2013
January 24, 2013 at 08:33 am EST
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Kennametal Inc. reported unaudited consolidated earnings results for the second quarter and six months ended December 31, 2012. For the quarter, the company reported sales of $633,144,000 against $641,741,000 for the same period last year. Operating income was $66,469,000 against $94,048,000 for the same period last year. Income from continuing operations before income taxes was $58,844,000 against $90,050,000 for the same period last year. Net income attributable to the company was $42,142,000 or $0.52 per diluted share against $73,697,000 or $0.91 per diluted share for the same period last year. Adjusted operating income was $61,283,000. Adjusted net income was $40,446,000 or $0.50 per diluted share.
For the six months, the company reported sales of $1,262,603,000 against $1,300,618,000 for the same period last year. Operating income was $130,850,000 against $195,658,000 for the same period last year. Income from continuing operations before income taxes was $118,170,000 against $185,599,000 for the same period last year. Net income attributable to the company was $88,532,000 or $1.09 per diluted share against $145,683,000 or $1.79 per diluted share for the same period last year. Adjusted operating income was $122,572,000. Adjusted net income was $86,461,000 or $1.07 per diluted share. Net cash flow from operating activities was $54,235,000 against $71,099,000 for the same period last year. Purchases of property, plant and equipment were $34,372,000 against $35,593,000 for the same period last year. Free operating cash flow year-to-date was $21 million compared with $38 million in the prior year.
The company revised earnings guidance for fiscal 2013. The company now expects fiscal 2013 sales growth between negative 2% and negative 4%, with organic sales ranging from negative 7% to negative 9%. Previously, the company had forecast total sales growth ranging from 3% to 6% with organic sales growth of flat to negative 3%. Based on the revision, the company has reduced its EPS guidance for fiscal 2013 to range from $2.60 to $2.80, versus its previous expectation of $3.40 to $3.70. Included in this outlook is the accretive contribution of the Stellite acquisition, which is now expected to range between $0.10 and $0.15 per share as compared to the previous range of $0.15 and $0.25 per share, net of integration costs. The company now expects to generate cash flow from operations between $290 million and $325 million for fiscal 2013, compared with the previous range of $320 million to $385 million. Based on anticipated capital expenditures of approximately $90 million to $100 million, the company expects to generate between $200 million and $225 million of free operating cash flow for the full fiscal year, as compared to the previous range of $225 million to $275 million.
Kennametal Inc. is an industrial technology company, which serves customers across the aerospace and defense, earthworks, energy, general engineering and transportation end markets. The Company's segments include Metal Cutting and Infrastructure. The Metal Cutting segment develops and manufactures tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets. The Metal Cutting segment offers products, including milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. The Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, for the aerospace and defense, energy, earthworks and general engineering end markets. The Infrastructure segment markets its products under the Kennametal brand.
Kennametal Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2012; Revised Earnings Guidance for Fiscal 2013