Kennametal said today fiscal first quarter per-share earnings increased 3 percent on record sales, but the Latrobe toolmaker trimmed its full-year profit outlook by 8 percent.

Net income totaled $35.5 million, or 47 cents per diluted share, on sales of $669.3 million vs. earnings of $34.9 million, or 44 cents per diluted share, and sales of $615.1 million in the year-ago quarter. Results for the current quarter included a restructuring charge of 10 cents per share.

Chairman and President Carlos Cardoso said the results reflect the company's better geographic balance, adding that 54 percent of revenue was generated outside North America.

"Our strong balance sheet allows us to weather economic downturns while continuing to invest in our business," Mr. Cardoso said.

Kennametal estimated that earnings for the fiscal year ending June 30 will be $2.75 per share to $2.90 per share, down from its previous forecast of $3 to $3.15 per share. The estimates do not include anticipated restructuring charges.

Shortly after 11 a.m., Kennametal shares were trading at $19.98, up 7 cents. They are off 47 percent for the year.