Kennametal Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended June 30, 2016; Provides Earnings Guidance for the Fiscal Year 2017
August 01, 2016 at 04:44 pm EDT
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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%.
Kennametal Inc. is an industrial technology company, which serves customers across the aerospace and defense, earthworks, energy, general engineering and transportation end markets. The Company's segments include Metal Cutting and Infrastructure. The Metal Cutting segment develops and manufactures tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets. The Metal Cutting segment offers products, including milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. The Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, for the aerospace and defense, energy, earthworks and general engineering end markets. The Infrastructure segment markets its products under the Kennametal brand.
Kennametal Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended June 30, 2016; Provides Earnings Guidance for the Fiscal Year 2017