Kennametal Q2 Net Loss Narrows; Adj. EPS, Sales Top View - Quick Facts

(RTTNews) - Kennametal Inc. (KMT), a machine tools company, reported Wednesday that its second-quarter net loss attributable to the company narrowed to $169.23 million from last year's loss of $388.30 million. Loss per share was $2.12, compared with the prior year loss of $4.89.

Adjusted earnings per share were $0.14 in the current quarter, compared with $0.52 in the prior year quarter.

On average, 14 analysts polled by Thomson Reuters expected earnings of $0.12 per share. Analysts' estimates typically exclude special items.

Sales were $524.01 million, compared with $675.63 million last year. Analysts expected $502.04 million.

Sales decreased by 22 percent, reflecting a 12 percent organic decline due to weakening of served end markets, a 6 percent unfavorable currency exchange impact and a 4 percent decline due to divestiture.

Looking ahead, for fiscal 2016, the company continues to expect the reduced guidance for consolidated adjusted earnings per share to be in the range of $0.85 to $1.05. This reflects an adjustment of approximately 40 percent at the midpoint from previous adjusted EPS guidance, which was projected to be in the range of $1.50 to $1.70. Analysts expect $0.81 earnings per share for the full year.

The company continues to expect fiscal 2016 total sales to decline in the range of 20 to 23 percent and organic sales to decline in the range of 10 to 13 percent. Previously, the decline in total sales was projected to be in the range of 10 to 14 percent, with a decline in organic sales of 6 to 10 percent.

The current guidance reflects the impact of the sale of non-core businesses, whereas the previous guidance did not reflect this transaction.

Kennametal also announced that its board of directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable February 26 to shareholders of record as of the close of business on February 12.