Kennametal jumps after topping estimates

Pittsburgh Post-Gazette

Kennametal shares jumped in early trading Tuesday after the Pittsburgh tool maker reported better than expected fiscal fourth-quarter results and said it expects selling prices to continue outpacing raw material price increases.

The company reported net income of $68.5 million, or 83 cents per share, versus earnings of $24.6 million, or 30 cents per share, in the yearago quarter. Sales rose 14 percent to $646.1 million.

Last year’s results included pretax costs of $20.8 million for restructuring and asset impairments versus similar costs of $5.1 million in the most recent quarter.

Excluding one-time items, adjusted earnings amounted to 87 cents per share versus analyst forecasts of 80 cents per share. Sales also topped analyst estimates of $632 million.

“Every business segment reported significant growth and profitability improvement, and we continue to see strong end market demand,” President and CEO Chris Rossi said in a statement.

Mr. Rossi said he does not expect the tariffs that President Donald Trump imposed on steel and aluminum imports this year to have a material effect on sales or costs.

For the fiscal year ended June 30, Kennametal reported net income of $200.2 million, or $2.42 per share, on sales of $2.37 billion versus earnings of $49.1 million, or 61 cents per share, and sales of $2.06 billion in the previous fiscal year.

Around 10:30 a.m., Kennametal shares were priced at $41.76, up $3.06. They are down 14 percent this year.