Latrobe toolmaker Kennametal today reported sharply lower profit for the fourth quarter and all of its recently ended fiscal year and said it will increase its quarterly dividend by two cents per share.
The company said it earned $60.8 million, or 76 cents per share, in the quarter ended June 30 versus profit of $86 million, or $1.06 per share, in the year-ago period.
Sales fell 9 percent to $671.4 million.
For the year, Kennametal reported profit of $203.3 million, or $2.52 per share, down from profit of $307.2 million, or $3.77 per share, in the previous fiscal year.
Sales of $2.6 billion were down 5 percent from the previous year.
Analysts were expecting fourth quarter earnings of 73 cents per shares and sales of $679 million.
Kennametal said it will increase its quarterly dividend nearly 13 percent to 18 cents. The company also announced it amended its stock repurchase program, adding 5 million shares to its previous plans to buy back 12 million shares.
The company forecast earnings of $2.90 to $3.10 per share in the current fiscal year and said it expects sales will increase 4 to 6 percent.
The results were disclosed before Wall Street opened. Kennametal shares closed Wednesday at $41.54, down 9 cents. They are up 4 percent this year.
Len Boselovic: email@example.com or 412-263-1941.