Second-quarter profit falls at Kennametal
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Kennametal shares tumbled this morning after the Latrobe tool maker reported sharply lower fiscal second-quarter profit and slashed its earnings outlook for the remainder of the fiscal year, citing a slower than expected recovery.
The company reported profit of $42.1 million, or 52 cents per share, versus profit of $73.7 million, or 91 cents per share, in the year-ago quarter.
Sales fell 1 percent to $633.1 million.
Analysts were forecasting profits of 62 cents per share and sales of $641 million.
In a statement, chairman, president and CEO Carlos Cardoso said the company is suffering from "generally lackluster activity in the global industrial markets."
The company previously forecast profit of $3.40 to $3.70 per share. Kennametal said it now expects to earn $2.60 to $2.80 per share for the fiscal year that ends June 30.
Sales will fall 2 to 4 percent short of the previous fiscal year versus Kennametal's previous expectations that earnings would increase 3 to 6 percent.
The results were disclosed prior to Wall Street's open. Shortly before 10 a.m., Kennametal shares were priced at $40.10, down $2.25.
First Published January 24, 2013 9:10 am