Exhibit 99.1

FOR IMMEDIATE RELEASE:
DATE: May 2, 2016

 

Investor Relations
CONTACT: Kelly Boyer
PHONE: 412-248-8287


Corporate Relations - Media
CONTACT: Christina Sutter
PHONE: 724-539-5708
 

KENNAMETAL ANNOUNCES FISCAL 2016 THIRD QUARTER RESULTS

PITTSBURGH, Pa., (May 2, 2016) – Kennametal Inc. (NYSE: KMT) today reported results for the 2016 fiscal third quarter ended March 31, 2016, with earnings per diluted share (EPS) of $0.20, compared with the prior year quarter loss per diluted share (LPS) of $0.58. Adjusted EPS were $0.37 in the current quarter compared with $0.46 in the prior year quarter. The company generated year-to-date free operating cash flow of $67 million compared with $143 million in the same period last year. Fiscal 2016 EPS guidance is now $1.05 to $1.15.
The current period reported results include restructuring and related charges of $0.18 per share, a net gain on divestiture of $0.03 per share and the current quarter tax impact of the second quarter asset impairment charges of $0.02 per share. The prior year quarter reported results include goodwill and other intangible asset impairment charges of $0.90 per share, restructuring and related charges of $0.12 per share and tax redeployment expense of $0.02 per share.
"Kennametal’s third quarter performance reflects progress from operating results in a challenging environment, and benefited from a favorable tax rate," said Ron De Feo, Kennametal President and CEO. "The 2016 third quarter adjusted operating margin of 7.8 percent is substantially higher than the year-to-date December fiscal 2016 adjusted operating margin of 3.6 percent, reflecting sequential volume growth and lower raw material costs. Infrastructure made progress, posting adjusted operating income of $10 million compared with losses for the first half of the year, and Industrial results reflect better sequential margins as well with adjusted operating income of $30 million. Adjusted EPS, while still lower year-over-year, strengthened sequentially as a result of the higher gross margins and lower operating expenses."
De Feo continued, "We have a lot of improvement opportunities within Kennametal to simplify operations, lower costs and drive margin improvements over time. We need to be more customer responsive and grow market share with innovation, entrepreneurship and speed - all things we are working on and plan to discuss with the investment community in the future."
 

Fiscal 2016 Third Quarter Key Developments

 

  • Sales were $498 million, compared with $639 million in the same quarter last year. Sales decreased by 22 percent, reflecting a 10 percent decline due to divestiture, an 8 percent organic decline and a 4 percent unfavorable currency exchange impact.

 

  • On a combined basis, pre-tax restructuring and related charges were $14 million, or $0.18 per share, and pre-tax benefits were approximately $20 million, or $0.19 per share in the quarter. In the same quarter last year, pre-tax restructuring and related charges were $17 million, or $0.12 per share, and pre-tax benefits were approximately $9 million, or $0.08 per share. Programs are on track to deliver fiscal 2016 year-over-year incremental savings of approximately $46 million.

 

  • Operating income was $27 million, compared with an operating loss of $120 million in the same quarter last year. Adjusted operating income was $39 million, compared with $56 million a year ago. The decrease in adjusted operating results was driven primarily by organic sales decline, unfavorable mix, lower fixed cost absorption and unfavorable currency exchange, offset partially by lower raw material costs and restructuring benefits. Adjusted operating margin was 7.8 percent in the current period and 8.8 percent in the prior year period.

 

  • The reported effective tax rate (ETR) was 24.7 percent and the adjusted ETR was 9.9 percent. The difference between the reported and adjusted ETR was due primarily to the effect of prior asset impairment charges, restructuring and related charges and divestiture. For the third quarter of fiscal 2015, the reported ETR was 64.4 percent (benefit on a loss) and the adjusted ETR was 23.1 percent (provision on income). The change in the adjusted ETR year-over-year is driven primarily by a favorable current period U.S. provision to return adjustment and a favorable geographical mix of earnings.

 

  • EPS was $0.20, compared with the prior year quarter LPS of $0.58. Adjusted EPS were $0.37 in the current quarter and $0.46 in the prior year quarter.

 

  • The company generated year-to-date free operating cash flow of $67 million compared with $143 million in the same period last year. The decrease in free operating cash flow was primarily attributable to lower cash earnings and higher restructuring and pension payments, partially offset by reductions of working capital.

 

Segment Developments for the Fiscal 2016 Third Quarter

 

  • Industrial segment sales of $316 million decreased 11 percent from $355 million in the prior year quarter due to unfavorable currency exchange of 5 percent, organic decline of 5 percent and 1 percent due to divestiture. Excluding the impact of currency exchange and divestiture, sales decreased approximately 26 percent in energy, 6 percent in general engineering, 1 percent in aerospace and defense and 1 percent in transportation. Activity in the energy sector continued to adversely affect the industrial economy, particularly in the Americas, however destocking in the indirect channel has been subsiding. The transportation market was mixed with fewer tooling package sales contributing to weaker sales in Asia, partially offset by favorable conditions in Europe and Americas. On a segment regional basis excluding the impact of currency exchange and divestiture, sales decreased 8 percent in Asia, 6 percent in the Americas and 2 percent in Europe.

 

  • Industrial segment operating income was $25 million compared with $35 million in the prior year. Adjusted operating income was $30 million compared to $44 million in the prior year quarter, driven by organic sales decline, unfavorable currency exchange, lower fixed cost absorption and unfavorable business mix, partially offset by restructuring program benefits and lower raw material costs. Industrial adjusted operating margin was 9.6 percent compared with 12.4 percent in the prior year.

 

  • Infrastructure segment sales of $181 million decreased 36 percent from $284 million in the prior year quarter. The decrease was driven by divestiture impact of 21 percent, 12 percent organic sales decline and 3 percent unfavorable currency exchange. Excluding the impact of currency exchange and divestiture, sales decreased by approximately 37 percent in oil and gas, 32 percent in mining, 15 percent in industrial applications and 12 percent in processing, offset partially by an increase of approximately 6 percent in construction. Sales in other markets remained relatively flat. Key energy markets, particularly in North America, took a further step down in our fiscal third quarter, with U.S. rig counts declining 38 percent within the quarter, ending down 58 percent year-over-year. In addition, conditions in underground mining in North America declined further, with sales down 58 percent year-over-year. As previously disclosed, this weakness is expected to continue for the foreseeable future. Partially offsetting these drivers was improved sales in the construction end market, with year-over-year sales growth realized in all regions led by North America at 9 percent. On a segment regional basis excluding the impact of divestiture and currency exchange, sales decreased 23 percent in the Americas and 11 percent in Asia, while Europe remained flat.

 

  • Infrastructure segment operating income was $4 million, compared with operating loss of $153 million in the same quarter of the prior year. Adjusted operating income was $10 million compared to $14 million in the prior year quarter. The change in adjusted operating results was primarily due to lower organic sales, unfavorable business mix and lower fixed cost absorption, partially offset by lower raw material costs and the benefits of restructuring savings. Infrastructure adjusted operating margin was 5.2 percent compared with 5.0 percent in the prior year.

 

Fiscal 2016 Year-To-Date Key Developments

 

  • Sales were $1,577 million, compared with $2,010 million in the same period last year. Sales decreased by 22 percent, reflecting a 12 percent organic decline, 6 percent unfavorable currency exchange impact and 4 percent from divestiture.

 

  • Operating loss was $200 million, compared with $393 million in the same period last year. Adjusted operating income was $77 million in the current period, compared with adjusted operating income of $186 million in the prior year. Adjusted operating results decreased due to organic sales decline, unfavorable business mix, lower fixed cost absorption and unfavorable currency exchange, offset partially by lower raw material costs and restructuring benefits. Adjusted operating margin was 4.9 percent, compared with 9.2 percent in the prior year.

 

  • LPS was $2.00 in the current year period, compared with $4.98 the prior year period. Adjusted EPS were $0.66 in the current year period and $1.55 in the prior year period.

 

Reconciliations of all non-GAAP financial measures are set forth in the tables attached, and corresponding descriptions are contained in the company’s report on Form 8-K, to which this news release is attached.

 

Recent Actions to Enhance Liquidity and Further Strengthen Financial Position

 

In April 2016 as previously announced, we took additional steps to enhance our liquidity and strengthen our financial position through entering into an amendment to the company's five-year, multi-currency, revolving credit facility. The amendment extends the tenor for a new five year term to April 2021. The prior facility matured in April 2018. The maximum leverage ratio was increased under the new amendment as defined in the agreement in order to increase operating flexibility. Further, the EBITDA definition was amended to allow for up to $120 million of aggregate cash restructuring payment add-backs through December 31, 2017. The minimum consolidated interest coverage ratio and the other key provisions remain unchanged.

 

Restructuring Programs

The previously announced restructuring programs are expected to produce combined annual ongoing pre-tax permanent savings of $105-$125 million. In total, pre-tax charges for these initiatives are expected to be approximately $188-$205 million.

 

RESTRUCTURING AND RELATED CHARGES AND SAVINGS (PRE-TAX)

 

 

 

 

 

 

 

 

Estimated Charges

Current Quarter Charges

Charges To Date

Estimated Annualized Savings

Approximate Current Quarter Savings

Approximate Savings Since Inception

Expected Completion Date

Phase 1

Up to $60M

$58M

$40M-$45M

$10M

$62M

6/30/2016

Phase 2

$90M-$100M

$4M

$42M

$40M-$50M

$8M

$32M

12/31/2018

Phase 3

$40M-$45M

$10M

$15M

$25M-$30M

$2M

$3M

3/31/2017

Total

$188M-$205M

$14M

$115M

$105M-$125M

$20M

$97M

 

 

Outlook

 

We now expect consolidated adjusted EPS for the full fiscal year to be in the range of $1.05 and $1.15 per share, an increase from our previous guidance of $0.85 to $1.05 per share. The improvement is driven primarily by our expectations of sales being at or near the higher end of our most recent announced guidance for fiscal 2016.

 

Dividend Declared

Kennametal also announced that its board of directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable May 27, 2016 to shareholders of record as of the close of business on May 13, 2016.

The company will discuss its fiscal 2016 third quarter results in a live webcast at 8:30 a.m. Eastern Time Tuesday, May 3, 2016. This event will be broadcast live on the company’s website, www.kennametal.com. To access the webcast, select "About Us", “Investor Relations” and then “Events.” A recorded replay of this event also will be available on the company’s website through June 3, 2016.

 

Certain statements in this release may be forward-looking in nature, or “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal’s outlook for earnings, sales volumes, and cash flow for fiscal year 2016 and our expectations regarding future growth and financial performance are forward-looking statements. Any forward looking statements are based on current knowledge, expectations and estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: economic recession; our ability to achieve all anticipated benefits of restructuring initiatives; our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures;  energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in Kennametal’s latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

 

About Kennametal

At the forefront of advanced materials innovation for more than 75 years, Kennametal Inc. is a global industrial technology leader delivering productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day over 12,000 employees are helping customers in more than 60 countries stay competitive. Kennametal generated more than $2.6 billion in revenues in fiscal 2015. Learn more at www.kennametal.com.

 

FINANCIAL HIGHLIGHTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

Three Months Ended March 31,

Three Months Ended March 31,

 

 

 

 

 

Nine Months Ended March 31,

Nine Months Ended March 31,

 

 

 

 

 

(in thousands, except per share amounts)

2016

2016

 

 

2015

2015

 

2016

2016

 

 

2015

2015

 

Sales

$

497,837

 

 

$

638,970

 

$

1,577,212

 

 

$

2,009,543

 

Cost of goods sold

340,484

340,484

 

 

439,500

439,500

 

1,127,828

1,127,828

 

 

1,392,516

1,392,516

 

     Gross profit

157,353

157,353

 

 

199,470

199,470

 

449,384

449,384

 

 

617,027

617,027

 

Operating expense

121,004

121,004

 

 

138,025

138,025

 

373,827

373,827

 

 

423,972

423,972

 

Restructuring and asset impairment charges

7,142

7,142

 

 

175,435

175,435

 

128,498

128,498

 

 

565,837

565,837

 

Loss on divestiture

(2,557

(2,557

)

 

 

130,750

130,750

 

 

 

Amortization of intangibles

4,429

4,429

 

 

6,402

6,402

 

16,315

16,315

 

 

20,361

20,361

 

     Operating income (loss)

27,335

27,335

 

 

(120,392

(120,392

)

(200,006

(200,006

)

 

(393,143

(393,143

)

Interest expense

7,113

7,113

 

 

7,760

7,760

 

20,895

20,895

 

 

23,929

23,929

 

Other (income) expense, net

(1,938

(1,938

)

 

(378

(378

)

(1,582

(1,582

)

 

32

32

 

Income (loss) before income taxes

22,160

22,160

 

 

(127,774

(127,774

)

(219,319

(219,319

)

 

(417,104

(417,104

)

Provision (benefit) for income taxes

5,465

5,465

 

 

(82,223

(82,223

)

(61,499

(61,499

)

 

(23,975

(23,975

)

Net income (loss)

16,695

16,695

 

 

(45,551

(45,551

)

(157,820

(157,820

)

 

(393,129

(393,129

)

Less: Net income attributable to noncontrolling interests

695

695

 

 

678

678

 

1,634

1,634

 

 

1,914

1,914

 

Net income (loss) attributable to Kennametal

$

16,000

 

 

$

(46,229

)

$

(159,454

)

 

$

(395,043

)

PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) earnings per share

$

0.20

 

 

$

(0.58

)

$

(2.00

)

 

$

(4.98

)

Diluted earnings (loss) earnings per share

$

0.20

 

 

$

(0.58

)

$

(2.00

)

 

$

(4.98

)

Dividends per share

$

0.20

 

 

$

0.18

 

$

0.60

 

 

$

0.54

 

Basic weighted average shares outstanding

79,871

79,871

 

 

79,389

79,389

 

79,814

79,814

 

 

79,282

79,282

 

Diluted weighted average shares outstanding

80,224

80,224

 

 

79,389

79,389

 

79,814

79,814

 

 

79,282

79,282

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)

March 31, 2016

March 31, 2016

 

 

June 30, 2015

June 30, 2015

 

 

 ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

$

136,564

 

 

$

105,494

 

Accounts receivable, net

365,827

365,827

 

 

445,373

445,373

 

Inventories

485,390

485,390

 

 

575,531

575,531

 

Other current assets

111,479

111,479

 

 

132,148

132,148

 

Total current assets

1,099,260

1,099,260

 

 

1,258,546

1,258,546

 

Property, plant and equipment, net

725,535

725,535

 

 

815,825

815,825

 

Goodwill and other intangible assets, net

514,818

514,818

 

 

704,058

704,058

 

Other assets

152,326

152,326

 

 

71,100

71,100

 

Total assets

$

2,491,939

 

 

$

2,849,529

 

 

 LIABILITIES

 

 

 

 

 

 

 

Current maturities of long-term debt and capital leases, including notes payable

$

4,140

 

 

$

15,702

 

Accounts payable

169,332

169,332

 

 

187,381

187,381

 

Other current liabilities

247,943

247,943

 

 

279,661

279,661

 

Total current liabilities

421,415

421,415

 

 

482,744

482,744

 

Long-term debt and capital leases

699,750

699,750

 

 

735,885

735,885

 

Other liabilities

195,963

195,963

 

 

255,465

255,465

 

Total liabilities

1,317,128

1,317,128

 

 

1,474,094

1,474,094

 

KENNAMETAL SHAREHOLDERS’ EQUITY

1,144,160

1,144,160

 

 

1,345,807

1,345,807

 

NONCONTROLLING INTERESTS

30,651

30,651

 

 

29,628

29,628

 

Total liabilities and equity

$

2,491,939

 

 

$

2,849,529

 

 

SEGMENT DATA (UNAUDITED)

Three Months Ended March 31,

Three Months Ended March 31,

 

 

 

 

 

Nine Months Ended March 31,

Nine Months Ended March 31,

 

 

 

 

 

(in thousands)

2016

2016

 

 

2015

2015

 

2016

2016

 

 

2015

2015

 

Outside Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

$

316,372

 

 

$

354,810

 

$

940,588

 

 

$

1,104,225

 

Infrastructure

181,465

181,465

 

 

284,160

284,160

 

636,624

636,624

 

 

905,318

905,318

 

Total outside sales

$

497,837

 

 

$

638,970

 

$

1,577,212

 

 

$

2,009,543

 

Sales By Geographic Region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

$

232,183

 

 

$

301,403

 

$

718,979

 

 

$

955,468

 

Western Europe

130,914

130,914

 

 

180,173

180,173

 

432,477

432,477

 

 

554,610

554,610

 

Rest of World

134,740

134,740

 

 

157,394

157,394

 

425,756

425,756

 

 

499,465

499,465

 

Total sales by geographic region

$

497,837

 

 

$

638,970

 

$

1,577,212

 

 

$

2,009,543

 

Operating Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

$

24,692

 

 

$

35,311

 

$

51,802

 

 

$

121,123

 

Infrastructure

3,748

3,748

 

 

(153,100

(153,100

)

(242,417

(242,417

)

 

(505,799

(505,799

)

Corporate (1)

(1,105

(1,105

)

 

(2,603

(2,603

)

(9,391

(9,391

)

 

(8,467

(8,467

)

Total operating income (loss)

$

27,335

 

 

$

(120,392

)

$

(200,006

)

 

$

(393,143

)

(1)  Represents unallocated corporate expenses.

 

 

In addition to reported results under generally accepted accounting principles in the United States of America (GAAP), the following financial highlight tables include, where appropriate, a reconciliation of adjusted results including: gross profit and margin, operating expense, operating expense as a percentage of sales, operating income (loss) and margin, net income (loss), diluted EPS (LPS), effective tax rate, Industrial operating income and margin, Infrastructure operating income (loss) and margin and free operating cash flow (which are non-GAAP financial measures), to the most directly comparable GAAP measures. For those adjustments that are presented ‘net of tax’, the tax effect of the adjustment can be derived by calculating the difference between the pre-tax and the post-tax adjustments presented. The tax effect on adjustments is calculated by preparing an overall tax calculation including the adjustments and then a tax calculation excluding the adjustments. The difference between these calculations results is the tax impact of the adjustments.

Management believes that investors should have available the same information that management uses to assess operating performance, determine compensation and assess the capital structure of the company. These non-GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. Investors are cautioned that non-GAAP financial measures utilized by the company may not be comparable to non-GAAP financial measures used by other companies. Reconciliations of all non-GAAP financial measures are set forth in the attached tables and descriptions of certain non-GAAP financial measures are contained in our report on Form 8-K to which this release is attached.

 

THREE MONTHS ENDED MARCH 31, 2016 (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except percents and per share data)

Sales

Sales

 

Gross profit

Gross profit

 

Operating expense

Operating expense

 

Operating income

Operating income

 

Net income(2)

Net income(2)

 

Diluted EPS

Diluted EPS

 

Effective tax rate

 

Reported results

$

497,837

 

$

157,353

 

$

121,004

 

$

27,335

 

$

16,000

 

$

0.20

 

24.7

%

Reported margins

 

 

 

31.6

31.6

%

24.3

24.3

%

5.5

5.5

%

 

 

 

 

 

 

 

 

Tax effect of prior asset impairment charges

 

 

 

 

1,251

1,251

 

0.02

0.02

 

(5.8

)

Restructuring and related charges

 

1,456

1,456

 

(5,400

(5,400

)

13,998

13,998

 

14,242

14,242

 

0.18

0.18

 

(4.9

)

Loss on divestiture

 

 

 

(2,557

(2,557

)

(1,902

(1,902

)

(0.03

(0.03

)

(4.1

)

Adjusted results

$

497,837

 

$

158,809

 

$

115,604

 

$

38,776

 

$

29,591

 

$

0.37

 

9.9

%

Adjusted margins

 

 

 

31.9

31.9

%

23.2

23.2

%

7.8

7.8

%

 

 

 

 

 

 

 

 

(2)  Represents amounts attributable to Kennametal Shareholders.

(in thousands, except percents)

Industrial sales

Industrial sales

 

Industrial operating income

Industrial operating income

 

Infrastructure sales

Infrastructure sales

 

Infrastructure operating income

Infrastructure operating income

 

Reported results

$

316,372

 

$

24,692

 

$

181,465

 

$

3,748

 

Reported operating margin

 

 

 

7.8

7.8

%

 

 

 

2.1

2.1

%

Restructuring and related charges

 

9,346

9,346

 

 

4,652

4,652

 

Loss on divestiture

 

(3,677

(3,677

)

 

1,117

1,117

 

Adjusted results

$

316,372

 

$

30,361

 

$

181,465

 

$

9,517

 

Adjusted operating margin

 

 

 

9.6

9.6

%

 

 

 

5.2

5.2

%

 

THREE MONTHS ENDED MARCH 31, 2015 (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except percents and per share data)

Sales

Sales

 

Gross profit

Gross profit

 

Operating expense

Operating expense

 

Operating (loss) income

Operating (loss) income

 

Net (loss) income (2)

Net (loss) income (2)

 

Diluted (LPS) EPS

Diluted (LPS) EPS

 

Effective tax rate

 

Reported results

$

638,970

 

$

199,470

 

$

138,025

 

$

(120,392

)

$

(46,229

)

$

(0.58

)

64.4

%

Reported margins

 

 

 

31.2

31.2

%

21.6

21.6

%

(18.8

(18.8

)%

 

 

 

 

 

 

 

 

Restructuring and related charges (3)

 

336

336

 

(658

(658

)

16,729

16,729

 

9,686

9,686

 

0.12

0.12

 

3.3

 

Goodwill and other intangible asset impairment charges

 

 

 

159,700

159,700

 

71,143

71,143

 

0.90

0.90

 

(40.2

)

Tax redeployment expense

 

 

 

 

2,138

2,138

 

0.02

0.02

 

(4.4

)

Adjusted results

$

638,970

 

$

199,806

 

$

137,367

 

$

56,037

 

$

36,738

 

$

0.46

 

23.1

%

Adjusted margins

 

 

 

31.3

31.3

%

21.5

21.5

%

8.8

8.8

%

 

 

 

 

 

 

 

 

(3)  Includes pre-tax restructuring related charges recorded in corporate of $569.

(in thousands, except percents)

Industrial sales

Industrial sales

 

Industrial operating income

Industrial operating income

 

Infrastructure sales

Infrastructure sales

 

Infrastructure operating (loss) income

Infrastructure operating (loss) income

 

Reported results

$

354,810

 

$

35,311

 

$

284,160

 

$

(153,100

)

Reported operating margin

 

 

 

10.0

10.0

%

 

 

 

(53.9

(53.9

)%

Restructuring and related charges (4)

 

8,673

8,673

 

 

7,487

7,487

 

Goodwill and other intangible asset impairment charges

 

 

 

159,700

159,700

 

Adjusted results

$

354,810

 

$

43,984

 

$

284,160

 

$

14,087

 

Adjusted operating margin

 

 

 

12.4

12.4

%

 

 

 

5.0

5.0

%

(4)  Excludes pre-tax restructuring related charges recorded in corporate of $569.

NINE MONTHS ENDED MARCH 31, 2016 (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except percents)

Sales

Sales

 

Operating (loss) income

Operating (loss) income

 

Net (loss) income(2)

Net (loss) income(2)

 

Diluted (LPS) EPS

Diluted (LPS) EPS

 

Reported results

$

1,577,212

 

$

(200,006

)

$

(159,454

)

$

(2.00

)

Reported operating margin

 

 

 

(12.7

(12.7

)%

 

 

 

 

 

 

Restructuring and related charges

 

37,970

37,970

 

31,978

31,978

 

0.42

0.42

 

Goodwill and other intangible asset impairment charges

 

108,456

108,456

 

81,487

81,487

 

1.02

1.02

 

Loss on divestiture and related charges

 

130,750

130,750

 

98,448

98,448

 

1.22

1.22

 

Adjusted results

$

1,577,212

 

$

77,170

 

$

52,459

 

$

0.66

 

Adjusted operating margin

 

 

 

4.9

4.9

%

 

 

 

 

 

 

 

NINE MONTHS ENDED MARCH 31, 2015 (UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except percents)

Sales

Sales

 

Operating (loss) income

Operating (loss) income

 

Net (loss) income(2)

Net (loss) income(2)

 

Diluted (LPS) EPS

Diluted (LPS) EPS

 

Reported results

$

2,009,543

 

$

(393,143

)

$

(395,043

)

$

(4.98

)

Reported operating margin

 

 

 

(19.6

(19.6

)%

 

 

 

 

 

 

Restructuring and related charges

 

37,105

37,105

 

25,628

25,628

 

0.33

0.33

 

Goodwill and other intangible asset impairment charges

 

541,700

541,700

 

490,416

490,416

 

6.18

6.18

 

Tax redeployment expense

 

 

2,138

2,138

 

0.02

0.02

 

Adjusted results

$

2,009,543

 

$

185,662

 

$

123,139

 

$

1.55

 

Adjusted operating margin

 

 

 

9.2

9.2

%

 

 

 

 

 

 

 

FREE OPERATING CASH FLOW (UNAUDITED)

 

Nine Months Ended

Nine Months Ended

 

 

 

 

 

 

 

March 31,

March 31,

 

 

 

 

 

(in thousands)

 

2016

2016

 

 

2015

2015

 

Net cash flow from operating activities

 

$

145,414

 

 

$

219,576

 

Purchases of property, plant and equipment

 

(83,285

(83,285

)

 

(77,620

(77,620

)

Proceeds from disposals of property, plant and equipment

 

5,102

5,102

 

 

1,300

1,300

 

Free operating cash flow

 

$

67,231

 

 

$

143,256