PITTSBURGH, Jan. 7, 2020 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) today provided an update on its progress toward previously announced restructuring actions. These actions are part of the Company's ongoing Simplification/Modernization initiatives to enable a leaner structure and optimize its operations globally, including footprint rationalization and consolidation.

FY20 Restructuring Actions

The Company recently completed the full closures of its manufacturing facilities in Lichtenau, Germany and Irwin, Pennsylvania, and consolidated those operations into other lower-cost and newly modernized Kennametal facilities. Additionally, it has completed negotiations with the employee representatives of the Neunkirchen, Germany, distribution center. Distribution activities have been transitioned to a third-party logistics provider.

"We have made good progress on our restructuring actions and reducing structural costs while also improving efficiency, consolidating plants and driving increased shareholder value," said President and Chief Executive Officer, Christopher Rossi. "Throughout the process we have maintained a focus on serving our customers and supporting our employees while we work through these transitions."

As expected, these actions will begin to reduce structural costs beginning in the second half of fiscal 2020. The closures and corresponding savings are part of the previously announced FY20 Restructuring Actions that are expected to result in annualized savings of $35 to $40 million with pre-tax-charges of $55 to $65 million.

FY21 Restructuring Actions

The Company also expects to deliver the FY21 Restructuring Actions with the original estimated annualized savings of $25 to $30 million but with lower estimated pre-tax charges of approximately $55 to $65 million, down from $60 to $75 million.

Following negotiations with local employee representatives, the Company has agreed to downsize the Essen, Germany facility instead of the previously proposed closure. The facility will be substantially smaller with considerably lower operating costs. Additionally, a significant reduction in labor will take place as products are moved to other lower-cost Kennametal facilities. The agreement between Kennametal and the Essen employee representatives is effective through June 30, 2022. The Company is also evaluating the acceleration of other facility closures as part of these restructuring activities. 

"Our decision to maintain a much smaller presence in Essen was the result of a compelling proposal offered by the local employee representatives," said Rossi. "The facility will be more competitive globally with improved productivity from increased work hours, lower costs and a smaller, but more profitable, product portfolio. We recognize the effect these changes will have on our employees, and we will continue to work closely with their representatives to assist them."

About Kennametal 

With over 80 years as an industrial technology leader, Kennametal Inc. delivers 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 approximately 10,000 employees are helping customers in more than 60 countries stay competitive. Kennametal generated nearly $2.4 billion in revenues in fiscal 2019.

Learn more at www.kennametal.com.

Follow @Kennametal: TwitterInstagramFacebookLinkedIn and YouTube

SOURCE Kennametal Inc.

You are about to add to your My Solutions page. Do you want to proceed?
product-image
Please adjust the following properties from

ISO Catalog Number

ANSI Catalog Number

to find similar products.

The following files are available

Please select a file to download

Models

You should be logged to see your dashboard information
Session expired due to inactivity, please login again
The product/s () you were trying to add to the cart is/are not available, please contact customer service
item(s) successfully added to the cart
View Cart

. Please enter the desired qty for the material(s) you want to include in your promotion or Proceed Without Promotion and only your base materials will be added to the cart.

Minimum quantity should be

SAP Material Number ISO Catalog Number Grade    
Thank you for your registration, pending approval & completion of the registration, your access is currently limited. Full utilization of product search capabilities & collaboration space is available and will remain. Please allow 2 business days for registration completion.

You are about to leave the Solution building process.

Are you sure you want to leave?