Kennametal: FY20 Restructuring Actions On Track - Quick Facts

(RTTNews) - Kennametal Inc. (KMT) said the company has made good progress on its restructuring actions for fiscal 2020. The company recently completed the full closures of its manufacturing facilities in Lichtenau, Germany and Irwin, Pennsylvania. The actions will begin to reduce structural costs beginning in the second half of fiscal 2020. The restructuring actions are expected to result in annualized savings of $35 to $40 million with pre-tax-charges of $55 to $65 million.

Under fiscal 2021 restructuring actions, Kennametal plans to deliver original estimated annualized savings of $25 to $30 million but with lower estimated pre-tax charges of approximately $55 to $65 million, down from $60 to $75 million.

The company has agreed to downsize the Essen, Germany facility instead of the previously proposed closure. The agreement between Kennametal and the Essen employee representatives is effective through June 30, 2022.