Kennametal Q3 Profit Declines, Cuts Full Year Outlook - Quick Facts

(RTTNews) - Kennametal Inc. (KMT) said third-quarter net income attributable to the company reduced to $50.87 million from $53.92 million in the prior year. Earnings per share fell to $0.64 from $0.67.

Adjusted earnings per share were $0.74. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.72 per share. Analysts estimates typically exclude special items.

Sales increased to $755.24 million from $655.36 million in the same quarter last year. Analysts expected revenues of $754.74 million.

The company makes tooling, engineered components, and advanced materials consumed in production processes.

Kennametal Chairman, President and CEO Carlos Cardoso said, "We delivered solid results in the March quarter. We continued to experience growth in industrial markets such as general engineering and transportation. Customer demand related to our served infrastructure markets have stabilized in certain areas, but remain somewhat mixed."

Kennametal now expects earnings per share to range from $2.60 to $2.70, compared with previous expectations of $2.60 to $2.75. The outlook excludes the impact of the TMB acquisition and nonrecurring items. Analysts look for earnings of $2.63 per share.

The company now expects fiscal 2014 total sales growth in the range of 10 to 11 percent. Organic sales growth is projected to range from 2 to 3 percent.

Previously, the company had forecast total sales growth ranging from 12 to 13 percent, with organic sales growth in the range of 2 to 4 percent.

Kennametal also said its board of directors declared a quarterly cash dividend of $0.18 per share, payable May 28 to shareowners of record as of the close of business on May 13.