Item 2.05 Costs Associated with Exit or Disposal Activities.
On June 9, 2020, as part of its ongoing Simplification/Modernization initiative,
Kennametal Inc. ("Kennametal" or "the Company") announced the acceleration of
its structural cost reduction plans. A permanent workforce reduction of
approximately 10 percent of salaried employees globally is expected to be
substantially complete in the first half of fiscal 2021. This action was
approved by the Board of Directors of Kennametal on June 4, 2020. Accordingly,
the Company is increasing the estimated annualized benefits of its FY21
Restructuring Actions to $65 million to $75 million from $25 million to $30
million and the expected pre-tax charges to $90 million to $100 million from $55
million to $60 million. These additional costs are expected to be primarily
severance-related cash expenditures.
Item 5.02 Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers; Compensatory Arrangements of Certain
Officers.
(e) Compensatory Arrangements of Certain Officers
On June 9, 2020, Kennametal announced that due to ongoing market headwinds the
Company is experiencing from COVID-19, our executive officers will be reducing
their base salaries by 20 percent beginning July 1, 2020. These salary
reductions are expected to be in effect for six months.
Item 8.01 Other Events.
In addition to the above, the Board of Directors met on June 4, 2020 and
approved a temporary cash retainer reduction for non-employee directors in the
amount of 20 percent, effective as of July 1, 2020. This reduction is expected
to be in effect for six months. The Board of Directors may review, change or end
the temporary cash retainer reduction at its discretion in the future.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated June 9, 2020
2
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KENNAMETAL INC.
Date: June 9, 2020 By: /s/ Damon J. Audia
Damon J. Audia
Vice President and Chief Financial Officer
3© Edgar Online, source Glimpses
KENNAMETAL INC. 
