PR Newswire
PITTSBURGH, Aug. 2, 2017
PITTSBURGH, Aug. 2, 2017 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) today announced fiscal 2017 and fourth quarter results. For fiscal 2017, the company reported earnings per diluted share (EPS) of $0.61, compared with a loss per diluted share (LPS) of $2.83 in the prior year. Adjusted EPS were $1.52 in the current year compared to $1.11 in the prior year. For its fiscal fourth quarter, the company reported EPS of $0.30, compared with the prior year quarter LPS of $0.83. The current quarter adjusted EPS were $0.56, compared to $0.44 in the prior year quarter.
"Fiscal year 2017 has been a year of substantial change at Kennametal on many levels," commented Executive Chairman of the Board, Ron De Feo. "After re-organizing the company to allow positive transformation, we focused on simplifying the company, improving sales execution and cost reduction. We have made significant achievements in each of these areas. The markets improved steadily through the year, and in the fourth quarter, organic sales grew at 12 percent - a quarterly rate of growth not seen since the December quarter of fiscal 2012. Total year organic growth was 4 percent, with year-over-year growth in all segments. Furthermore, our cost reduction achievements were significant and we believe that we are well-positioned to improve further as we move steadily forward with our multi-year plans."
De Feo continued, "Adjusted EPS of $0.56 for the quarter and $1.52 for the year compare favorably with prior year, but are at the lower end of our expectations, as margins in the fourth quarter were impacted negatively in the amount of $0.05 per share due to a LIFO charge, increased variable compensation in addition to productivity challenges as a result of higher than anticipated organic sales."
"For fiscal year 2018, we expect adjusted EPS between $2.00 and $2.30, on organic sales growth of 2 to 4 percent, reflecting further significant achievements in cost reduction and margin improvement. Our capital expenditures are expected to be in the range of $210 to $230 million as we aggressively modernize facilities and begin to optimize our end-to-end processes, which is expected to result in slightly positive free operating cash flow."
Chris Rossi, Kennametal President and CEO commented, "I am honored to be joining the Kennametal team at this exciting time in the Company's history. There is much to do to finish the work already started on modernization and end-to-end process improvement, and I look forward to working with the team and other stakeholders in the years to come."
This earnings release contains non-GAAP financial measures. Reconciliations of all non-GAAP financial measures are set forth in the tables attached to this earnings release, and corresponding descriptions are contained in the company's report on Form 8-K, to which this news release is attached, and which was filed with the Securities and Exchange Commission (SEC) on August 2, 2017.
Fiscal 2017 Fourth Quarter Key Developments
Segment Developments for the Fiscal 2017 Fourth Quarter
Fiscal 2017 Key Developments
Restructuring Programs
Restructuring programs are currently expected to produce combined annual ongoing pre-tax permanent savings of $165-$180 million. In total, pre-tax charges for these initiatives are expected to be approximately $165-$195 million.
Restructuring and related charges and savings (pre-tax) | | ||||||||||
| Estimated | Current | Charges | Estimated | Approximate | Expected | |||||
Headcount reduction initiatives | $60M-$70M | $14M | $56M | $90M | $20M | 12/31/2017 | |||||
Other | $105M-$125M | $9M | $92M | $75M-$90M | $17M | 12/31/2018 | |||||
Total | $165M-$195M | $23M | $148M | $165M-$180M | $37M | | |||||
| | | | | | |
Outlook
The company expects 2018 adjusted EPS between $2.00 and $2.30, on organic sales growth of 2 to 4 percent, reflecting further significant achievements in cost reduction and margin improvement. Capital expenditures are expected to be in the range of $210 to $230 million as the company continues modernizing facilities and optimizing end-to-end processes, which the company expects will result in slightly positive free operating cash flow.
Dividend Declared
Kennametal also announced that its board of directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable on August 31, 2017 to shareholders of record as of the close of business on August 18, 2017.
The company will discuss its fiscal 2017 fourth-quarter results in a live webcast at 8:30 a.m. Eastern Time Thursday, August 3, 2017. This event will be broadcast live on the company's website, www.kennametal.com. To access the webcast, select "About Us", "Investor Relations" and then "Events." A recorded replay of this event also will be available on the company's website through September 3, 2017.
Certain statements in this release may be forward-looking in nature, or "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal's outlook for earnings, sales volumes, cash flow and capital expenditures for fiscal year 2018 and our expectations regarding future growth and financial performance are forward-looking statements. Any forward looking statements are based on current knowledge, expectations and estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: economic recession; our ability to achieve all anticipated benefits of restructuring initiatives; our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in Kennametal's latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.
About Kennametal
At the forefront of advanced materials innovation for more than 75 years, Kennametal Inc. is a global industrial technology leader delivering productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 11,000 employees are helping customers in more than 60 countries stay competitive. Kennametal generated nearly $2.1 billion in revenues in fiscal 2017. Learn more at www.kennametal.com.
FINANCIAL HIGHLIGHTS CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
| | | | ||||||||||||
| Three Months Ended | | Twelve Months Ended | ||||||||||||
(in thousands, except per share amounts) | 2017 | | 2016 | | 2017 | | 2016 | ||||||||
Sales | $ | 565,025 | | | $ | 521,224 | | | $ | 2,058,368 | | | $ | 2,098,436 | |
Cost of goods sold | 384,736 | | | 354,540 | | | 1,400,661 | | | 1,482,369 | | ||||
Gross profit | 180,289 | | | 166,684 | | | 657,707 | | | 616,067 | | ||||
Operating expense | 115,359 | | | 121,148 | | | 463,167 | | | 494,975 | | ||||
Restructuring and asset impairment charges | 20,788 | | | 15,312 | | | 65,018 | | | 143,810 | | ||||
Loss on divestiture | — | | | 712 | | | — | | | 131,463 | | ||||
Amortization of intangibles | 3,912 | | | 4,448 | | | 16,578 | | | 20,762 | | ||||
Operating income (loss) | 40,230 | | | 25,064 | | | 112,944 | | | (174,943) Werbung Mehr Nachrichten zur Kennametal Aktie kostenlos abonnieren
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