Kennametal Inc. (KMT: Quote) reported that its second-quarter net income attributable to the company was $42.14 million or $0.52 per share, down from $73.70 million or $0.91 per share in the year ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.64 per share for the quarter. Analysts’ estimates typically exclude special items.
Sales for the quarter were $633.14 million, compared with $641.74 million in the same quarter last year. Sales decreased by 1 percent, reflecting a 10 percent organic decline and a 1 percent unfavorable effect from currency exchange, partially offset by a 9 percent increase from Stellite and 1 percent from the effect of more business days. Twelve analysts had consensus revenue estimate of $640.59 million for the quarter.
The company also announced that its board of directors declared a quarterly cash dividend of $0.16 per share. The dividend is payable February 20, 2013 to shareowners of record as of the close of business on February 5, 2013.
Due to slower than expected demand in the company’s served markets, the company said it adjusted its full-year outlook given lower sales volumes. However, the company notes that its order rates have remained steady over the past few months, which may reflect that bottoming has occurred.
The company now expects fiscal 2013 sales growth between negative 2 and negative 4 percent, with organic sales ranging from negative 7 to negative 9 percent. Previously, the company had forecast total sales growth ranging from 3 to 6 percent with organic sales growth of flat to negative 3 percent.
Based on the revision, the company has reduced its earnings per share guidance for fiscal 2013 to range from $2.60 to $2.80, versus its previous expectation of $3.40 to $3.70. Included in this outlook is the accretive contribution of the Stellite acquisition, which is now expected to range between $0.10 and $0.15 per share as compared to the previous range of $0.15 and $0.25 per share, net of integration costs.
Analysts expect the company to report earnings of $3.34 per share on revenues of $2.79 billion for fiscal 2013.
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by RTT Staff Writer
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