Kennametal shares fell in early trading today after the Latrobe tool maker reported sharply lower profits for the fourth quarter and its fiscal year, as higher operating costs and restructuring charges offset rising sales.
The results were well below analyst forecasts.
Fourth-quarter net income fell 25 percent to $45.5 million, or 57 cents per share, versus earnings of $60.8 million, or 76 cents per share, in the year-ago quarter. Sales rose 15 percent to $772.2 million.
Excluding one-time items and the company’s acquisition of Allegheny Technologies’ tungsten materials business, adjusted earnings were 75 cents per share versus analyst estimates of 89 cents per share. Revenue also fell short of Wall Street expectations.
For the fiscal year ended June 30, Kennametal reported net income of $158.4 million, or $1.99 per share, versus earnings of $203.3 million, or $2.52 per share, in the prior fiscal year. Sales rose 10 percent to $2.84 billion.
The results were reported before Wall Street opened. Shortly after trading began, Kennametal shares were priced at $42.30, off $1.95.
Len Boselovic: 412-263-1941 or firstname.lastname@example.org First Published July 31, 2014 12:00 AM