Kennametal today reported second-fiscal-quarter earnings that fell short of analyst estimates and reduced its outlook for the fiscal year.
The Latrobe tool maker posted profit of $24.2 million, or 30 cents per share, versus earnings of $42.1 million, or 52 cents per share, in the year-ago quarter.
Sales rose 9 percent to $689.9 million, largely because of the company’s $607 million acquisition of Allegheny Technologies tungsten materials business during the quarter.
The results reflect costs related to the acquisition, restructuring charges, and a $7 million tax expense related to bringing overseas cash back to the United States. Excluding those items and the results of the tungsten unit, adjusted earnings totaled 52 cents per share, shy of analyst forecasts of 61 cents per share.
In a statement, chairman, president and CEO Carlos Cardoso said the company expects to incur pretax restructuring charges of $40 million to $50 million within the next three years related to the tungsten business. The measures are expected to generate annual savings of $35 million to $45 million once they are fully implemented, he said.
Mr. Cardoso also said excluding items related to the acquisition, per-share earnings for the fiscal year ending June 30 will be $2.60 to $2.75. Kennametal had previously forecast earnings of $2.90 to $3.05 per share.
The results were announced before Wall Street opened. Kennametal shares closed Wednesday at $47.68, down 45 cents.
Len Boselovic: firstname.lastname@example.org or 412-263-1941.