Kennametal Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended June 30, 2016. For the quarter, sales were $521,224,000 against $637,653,000 a year ago. Operating income was $25,064,000 against $35,320,000 a year ago. The decrease in operating income in the current period was primarily driven by organic sales decline and unfavorable mix in both segments, partially offset by lower raw material costs and restructuring benefits. Income from continuing operations before income taxes was $20,748,000 against $29,488,000 a year ago. Net loss attributable to the company was $66,515,000 against net income of $21,146,000 a year ago. Diluted loss per share were $0.83 against diluted earnings per share of $0.26 a year ago. Adjusted sales were $521,224,000 against $577,916,000 a year ago. Adjusted operating income was $46,695,000 against $52,975,000 a year ago. Adjusted Net income was $35,158,000 or $0.44 per diluted share against $35,477,000 or $0.44 per diluted share a year ago. Adjusted EBITDA for the quarter was $77 million compared to prior year fourth quarter adjusted EBITDA of $86 million.

For the year, sales were $2,098,436,000 against $2,647,195,000 a year ago. Operating loss was $174,943,000 against $357,823,000 a year ago. Loss from continuing operations before income taxes was $198,571,000 against $387,615,000 a year ago. Net loss attributable to the company was $225,968,000 against $373,896,000 a year ago. Diluted loss per share was $2.83 against $4.71 a year ago. Adjusted sales were $2,015,924,000 against $2,404,545,000 a year ago. Adjusted operating income was $125,777,000 against $235,028,000 a year ago. Adjusted Net income was $88,975,000 or $1.11 per diluted share against $158,442,000 or $2.00 per diluted share a year ago. Net cash flow from operating activities was $219,322,000 against $351,437,000 a year ago. Purchases of property, plant and equipment was $110,697,000 against $100,939,000 a year ago. Free operating cash flow was $114,603,000 against $266,620,000 a year ago. The decrease in free operating cash flow was primarily by lower cash earnings, higher net capital expenditures and higher restructuring, tax and pension payments, partially offset by reductions in working capital. In terms of uses of cash year-to-date, net capital expenditures were $105 million.

The company expects 2017 adjusted earnings per share between $1.10 and $1.40, on flat sales. The company anticipates organic sales growth of between negative 2% and positive 2%, and free operating cash flow between $90 million and $110 million. Capital expenditures are forecast to be between $100 million and $120 million. Free operating cash flow is forecast to fall between $90 million and $100 million. The effective tax rate is forecast to be 13% to 17%.