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.