Kennametal Reduces FY20 Outlook

(RTTNews) - Kennametal Inc. (KMT) announced an updated outlook for fiscal 2020, which includes: adjusted EPS of $1.20 to $1.50 on organic sales decline of 9 to 12 percent. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.77. Analysts' estimates typically exclude special items. The company said it has reduced its outlook due primarily to lower end-market demand experienced in the December quarter, as well as expectations of further weakness through the remainder of the fiscal year, which was previously forecasted to stabilize.

Second-quarter adjusted EPS was $0.17, compared to $0.71, prior year. Sales were $505 million decreased 14 percent from $587 million, a year ago, reflecting 12 percent organic sales decline, 1 percent unfavorable currency exchange effect and 1 percent decline from divestiture.

"Our second quarter results reflect weakening end-market conditions, particularly from greater than expected deceleration in the U.S., Germany and India, combined with headwinds developing in the 737 MAX supply chain," said Christopher Rossi, President and CEO.

Shares of Kennametal Inc. were down nearly 8% after hours.