Shares of Kennametal advanced 12 percent today after the Latrobe toolmaker reported a smaller than expected quarterly loss and said earnings for the current year will be better than Wall Street was expecting.

The company reported a first fiscal quarter loss of $9.8 million, or 12 cents per diluted share. The results reflect pretax restructuring charges of $9 million, or 6 cents per share. Sales fell 36 percent to $409.4 million.

Analysts had forecast a loss of 15 cents per share, excluding one-time items.

In the year-ago quarter, Kennametal earned $35.5 million, or 47 cents per diluted share, on sales of $643.4 million.

"Our September quarter performance reflects the positive effect and future potential of the many difficult actions we took during the global economic downturn," Chairman, President and CEO Carlos Cardoso said.

He expects the company to break even or turn a small profit for the second quarter, excluding restructuring and divestiture-related charges. For the fiscal year ending June 30, per-share earnings will be between 50 cents and 70 cents, excluding charges for restructuring and divestitures, he said.

Analysts are forecasting earnings of 49 cents per share.

Shortly after noon, Kennametal shares were trading at $25.53, up $2.78. They have advanced 15 percent this year.

The company said it is approaching its goal of saving $125 million annually from cost reductions and operating efficiencies.

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