Kennametal Inc. today reported fiscal 2010 fourth quarter earnings per diluted share (EPS) of $0.49 compared with prior year quarter reported loss per diluted share of $0.45. Absent restructuring and divestiture related charges, adjusted EPS for the current quarter were $0.61, compared with the prior year quarter adjusted loss per share of $0.13.
"Our fiscal 2010 fourth quarter performance clearly reflects that we are realizing continuing sales growth and higher incremental margins," said Carlos Cardoso, Kennametal's Chairman, President and Chief Executive Officer. "Our talented global workforce continues to successfully implement our strategies through their efforts and dedication."
Cardoso added, "As we begin our new fiscal year, Kennametal is positioned to continue to benefit from improving economic conditions as we remain focused on maximizing opportunities to drive earnings growth. In addition, we expect to maintain a strong balance sheet and generate solid cash flows. We have proven that we can operate effectively in a challenging environment, demonstrating that Kennametal is a business capable of further expanding our profitability and delivering superior value to our shareholders."
Reconciliations of all non-GAAP financial measures are set forth in the attached tables, and the corresponding descriptions are contained in our report on Form 8-K to which this release is attached.
Fiscal 2010 Fourth Quarter Key Developments
-- Sales were $539 million, compared with $386 million in the same
quarter last year. Sales increased 40 percent due to organic growth of
39 percent and a 1 percent favorable impact from foreign currency
effects. Sales improved sequentially from the March quarter by 9
percent, representing the fourth consecutive quarter of sequential
sales growth.
-- The company realized pre-tax benefits from restructuring programs of
approximately $38 million. Pre-tax restructuring and related charges
of $13 million, or $0.12 per diluted share, were recorded in the
quarter.
-- Operating income was $61 million compared with an operating loss of
$25 million in the same quarter last year. Absent restructuring and
related charges in both periods, operating income was $74 million,
compared with an operating loss of $3 million in the prior year
quarter. Adjusted operating margin reached 13.8 percent, despite the
costs of approximately $20 million for the restoration of salaries and
other employment related costs that had been temporarily reduced. The
increased margin was driven by higher sales, increased capacity
utilization, savings from restructuring programs and ongoing cost
discipline. In addition, incremental margins were very strong on both
a year-over-year and sequential basis.
-- Liquidity and operating flexibility were enhanced due to the company's
new 5-year credit facility.
-- Reported EPS were $0.49 compared with prior year quarter reported loss
per diluted share of $0.45. Adjusted EPS were $0.61 compared with
prior year quarter adjusted loss per diluted share of $0.13. A
reconciliation follows:
Earnings (Loss) Per Diluted Share Reconciliation
Fourth Quarter FY 2010 Fourth Quarter FY 2009
Reported loss per
Reported EPS $0.49 diluted share ($0.45)
Restructuring and Restructuring and
related charges 0.12 related charges 0.08
Loss on divestiture and
related 0.24
charges ----
Adjusted loss per
Adjusted EPS $0.61 diluted share ($0.13)
===== ======
Segment Highlights for the Fiscal 2010 Fourth Quarter
-- Metalworking Solutions & Services Group (MSSG) sales increased by 44
percent from the prior year quarter, driven by organic growth of 43
percent and favorable foreign currency effects of 1 percent. On an
organic basis, sales in Latin America, Asia Pacific and India
increased 66 percent, 65 percent and 64 percent, respectively. North
America and Europe reported organic sales increases of 42 percent and
34 percent, respectively, compared with the prior year quarter.
Sequentially, sales increased by 8 percent as global industrial
production continued to improve. This represents the fourth
consecutive quarter of sequential sales growth for MSSG.
-- MSSG operating income was $45 million compared with an operating loss
of $29 million for the same quarter of the prior year. Absent
restructuring and related charges recorded in both periods, MSSG
operating income was $57 million compared with an operating loss of
$16 million in the prior year quarter. The primary drivers of the
increase in operating income were higher sales volumes and improved
capacity utilization, cost savings from restructuring programs and
continued cost containment. MSSG adjusted operating margin improved
sequentially from the March quarter by 580 basis points to 18.1
percent from 12.3 percent.
-- Advanced Materials Solutions Group (AMSG) sales increased 34 percent
from the prior year quarter, driven by 33 percent organic growth and 1
percent favorable foreign currency effects. The organic increase was
primarily driven by higher sales of mining and construction products,
as well as increased demand for energy related and engineered
products. Sequentially, sales increased by 11 percent, driven by
better performance in all AMSG end markets.
-- AMSG operating income was $43 million, compared with $14 million in
the same quarter of the prior year. Absent restructuring and related
charges recorded in both periods, AMSG operating income was $45
million in the current quarter compared with $18 million in the prior
year quarter. Operating income improved primarily due to higher sales
volumes, cost savings from restructuring programs and continued cost
containment. For the second consecutive quarter, AMSG adjusted
operating margin increased sequentially by 150 basis points to 19.9
percent from 18.4 percent in the March quarter.
Fiscal Year 2010 Key Developments
-- Sales were $1.9 billion compared to $2.0 billion in the previous
fiscal year. Sales decreased 8 percent on an organic basis, partially
offset by a 1 percent favorable impact from foreign currency effects
and a 1 percent increase from a business acquisition made in the prior
fiscal year.
-- The company recognized pre-tax benefits from restructuring programs of
approximately $137 million. Pre-tax restructuring and related charges
of $49 million, or $0.52 per share were recorded during the fiscal
year.
-- Operating income was $93 million, compared with an operating loss of
$100 million for the prior fiscal year. Absent restructuring related
and asset impairment charges, operating income increased to $142
million from $85 million in the prior year. This represents a $57
million operating income increase on a sales decrease of $116 million.
This highlights the benefits associated with improved capacity
utilization, restructuring actions and continued cost containment.
-- Reported EPS were $0.57, compared to the prior year reported loss per
diluted share of $1.64. Adjusted EPS were $1.10, compared with prior
year adjusted EPS of $0.80. A reconciliation follows:
Earnings (Loss) Per Diluted Share Reconciliation
FY 2010 FY 2009
Reported loss per
Reported EPS $0.57 diluted share ($1.64)
Restructuring and Restructuring and
related charges 0.52 related charges 0.82
Loss on divestiture and Loss on divestiture and
related 0.01 related 0.24
charges charges
Asset impairment
charges 1.38
Adjusted EPS $1.10 Adjusted EPS $0.80
===== ====
-- Cash flow from operating activities was $165 million, compared with
$192 million in the prior year. Net capital expenditures were $52
million for fiscal 2010. The company generated free operating cash
flow of $113 million compared with $90 million in the prior fiscal
year. The free operating cash flow increase was driven by continued
working capital management, in particular significantly improved days
sales outstanding and higher inventory turns, as well as lower capital
expenditures in the current year.
Restructuring Actions
Kennametal's restructuring programs continue to remain on track to deliver the anticipated annual ongoing pre-tax permanent savings of $155 million to $160 million once all programs are fully implemented. The cumulative total pre-tax charges are expected to be approximately $160 million to $165 million. As previously mentioned, total restructuring and related benefits realized in fiscal 2010 were approximately $137 million while the related charges recorded inception-to-date were approximately $128 million.
New Credit Facility
On June 25, 2010, the company entered into a new 5-year multi-currency, revolving credit facility that replaced the prior credit facility. The new facility is scheduled to mature in June 2015. Similar to the prior agreement, the new credit agreement permits revolving loans of up to $500 million for working capital, capital expenditures and general corporate purposes. The new facility provides more favorable pricing and increased operating flexibility relative to the prior agreement.
Outlook
The company's outlook for fiscal 2011 assumes that the global economy and worldwide industrial production will continue to gradually improve and that overall economic trends will remain in positive territory. As a result, the company expects to experience positive growth during the fiscal year in all geographies, albeit more modest growth in our served European markets.
The following are some additional assumptions encompassed in this outlook.
-- Global industrial production is anticipated to be in the mid single
digits for the full year with higher growth in the first half of the
fiscal year.
-- Sales volumes and related capacity utilization are expected to yield
strong incremental margins and offset year-over-year cost increases
for salary restoration and merit increases as well as for pension and
incentive compensation.
-- The company's restructuring programs remain on track to deliver annual
ongoing savings of $155 million to $160 million.
-- Based on current exchange rates, foreign currency may negatively
impact results primarily due to the relationship of the U.S. dollar to
the Euro.
-- Seasonal earnings are expected to revert back to historical patterns
with approximately 40 percent of earnings occurring in the first half
and 60 percent in the second half of the fiscal year.
Under these assumed conditions, Kennametal expects organic sales growth to be 14 percent to 17 percent higher than in fiscal 2010 and total sales growth to be higher by 11 percent to 14 percent. This is in line with the company's goal of growing at least two times the rate of increase in global industrial production.
The company expects EPS for fiscal 2011 to be in the range of $1.85 to $2.15 per share, excluding charges related to previously announced restructuring actions. Kennametal also anticipates cash flow from operating activities of approximately $220 million to $245 million for fiscal 2011. Based on anticipated capital expenditures of $80 million, the company expects to generate between $140 million to $165 million of free operating cash flow for the full fiscal year.
New Operating Structure Implemented as of July 1, 2010
In order to take additional advantage of growth opportunities as well as to provide a better platform for continually improving the efficiency and effectiveness of operations, Kennametal implemented a new operating structure at the start of its new fiscal year on July 1, 2010.
The new structure provides for an enhanced market sector approach coupled with a more customer-centric focus for the sales organization and other key market-facing functions such as customer service, marketing, product management, engineering and product development. The new structure also involves the formation of a single, global integrated supply chain and logistics organization that unleashes additional opportunities to achieve higher customer satisfaction and realize lower costs to serve. Furthermore, the new structure provides for more uniform management of administrative functions on a global basis to further improve the consistency, effectiveness and efficiency of the services provided by these functions.
A key attribute of the new structure is the establishment of two new operating segments by market sector which replace the previous two operating segments that were based on a product focus. The two new reportable operating segments are named Industrial and Infrastructure. The Industrial business is focused on customers within the transportation, aerospace, defense and general engineering market sectors. The Infrastructure business is focused on customers within the energy and earthworks industries.
Under the new structure, more corporate expenses will be allocated to the new segments than were allocated to the previous segments. The remaining corporate expenses that are determined to be non-allocable will continue to be reported as Corporate.
Dividend Declared
Kennametal also announced that its Board of Directors declared a regular quarterly cash dividend of $0.12 per share. The dividend is payable August 25, 2010 to shareowners of record as of the close of business on August 10, 2010.
Kennametal advises shareowners to note monthly order trends, for which the company makes a disclosure ten business days after the conclusion of each month. This information is available on the Investor Relations section of Kennametal's corporate website at www.kennametal.com.
Fourth quarter and full year results for fiscal 2010 will be discussed in a live Internet broadcast at 10:00 a.m. Eastern time today. This event will be broadcast live on the company's website, www.kennametal.com. Once on the homepage, select "Investor Relations" and then "Events." The replay of this event will also be available on the company's website through August 29, 2010.
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 its fiscal year 2011 and its expectations regarding future growth and financial performance are forward-looking statements. These statements are based on current 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: prolonged economic recession; restructuring and related actions (including associated costs and anticipated benefits); availability and cost of the raw materials we use to manufacture our products; 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; our ability to protect and defend our intellectual property; competition; our ability to retain our management and employees; demands on management resources; global or regional catastrophic events; integrating acquisitions and achieving the expected savings and synergies; business divestitures; potential claims relating to our products; energy costs; commodity prices; labor relations; demand for and market acceptance of new and existing products; implementation of environmental remediation matters; implementation of a new operating and segment structure; and successful completion of information systems upgrades, including our enterprise system software. Many of these 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 undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.
Kennametal Inc. delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions. This proven productivity is enabled through our advanced materials sciences and application knowledge. Our commitment to a sustainable environment provides additional value to our customers. Companies operating in everything from airframes to coal mining, from engines to oil wells and from turbochargers to construction recognize Kennametal for extraordinary contributions to their value chains. In fiscal year 2010, customers bought approximately $1.9 billion of Kennametal products and services -- delivered by our approximately 11,000 talented employees doing business in more than 60 countries -- with more than 50 percent of these revenues coming from outside North America. Visit us at www.kennametal.com. [KMT-E]
FINANCIAL HIGHLIGHTS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months
Ended Year Ended
June 30, June 30,
(in thousands,
except per share
amounts) 2010 2009 2010 2009
----------------- ---- ---- ---- ----
Sales $538,642 $386,037 $1,884,067 $1,999,859
Cost of goods sold 339,127 287,208 1,256,339 1,423,320
------------------ ------- ------- --------- ---------
Gross profit 199,515 98,829 627,728 576,539
Operating expense 123,361 104,024 477,487 489,567
Restructuring and
asset impairment
charges 12,025 16,214 43,923 173,656
Amortization of
intangibles 3,144 3,260 13,090 13,134
--------------- ----- ----- ------ ------
Operating income
(loss) 60,985 (24,669) 93,228 (99,818)
Interest expense 6,347 5,503 25,203 27,244
Other income, net (2,263) (4,617) (8,577) (14,566)
----------------- ------ ------ ------ -------
Income (loss) from
continuing
operations 56,901 (25,555) 76,602 (112,496)
before income
taxes
Provision
(benefit) for
income taxes 15,951 (10,002) 26,977 (11,205)
-------------- ------ ------- ------ -------
Income (loss) from
continuing
operations 40,950 (15,553) 49,625 (101,291)
Loss from
discontinued
operations - (17,174) (1,423) (17,340)
------------- --- ------- ------ -------
Net income (loss) 40,950 (32,727) 48,202 (118,631)
Less: Net income
attributable to 366 266 1,783 1,111
noncontrolling
interests --- --- ----- -----
--------------
Net income (loss)
attributable to
Kennametal $40,584 $(32,993) $46,419 $(119,742)
================= ======= ======== ======= =========
Amounts
Attributable to
Kennametal Common
Shareowners:
Income (loss) from
continuing
operations $40,584 $(15,819) $47,842 $(102,402)
Loss from
discontinued
operations - (17,174) (1,423) (17,340)
------------- --- ------- ------ -------
Net income (loss)
attributable to
Kennametal $40,584 $(32,993) $46,419 $(119,742)
================= ======= ======== ======= =========
PER SHARE DATA
ATTRIBUTABLE TO
KENNAMETAL
Basic earnings
(loss) per share:
Continuing
operations $0.50 $(0.21) $0.59 $(1.40)
Discontinued
operations - (0.24) (0.02) (0.24)
------------ --- ----- ----- -----
$0.50 $(0.45) $0.57 $(1.64)
===== ====== ===== ======
Diluted earnings
(loss) per
share:
Continuing
operations $0.49 $(0.21) $0.59 $(1.40)
Discontinued
operations - (0.24) (0.02) (0.24)
------------ --- ----- ----- -----
$0.49 $(0.45) $0.57 $(1.64)
===== ====== ===== ======
Dividends per
share $0.12 $0.12 $0.48 $0.48
============= ===== ===== ===== =====
Basic weighted
average shares
outstanding 81,598 72,772 80,966 73,122
=============== ====== ====== ====== ======
Diluted weighted
average shares
outstanding 82,592 72,772 81,690 73,122
================ ====== ====== ====== ======
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 30, June 30,
(in thousands) 2010 2009
-------------- ---- ----
ASSETS
Cash and cash equivalents $118,129 $69,823
Accounts receivable, net 326,699 278,977
Inventories 364,268 381,306
Other current assets 106,835 145,798
-------------------- ------- -------
Total current assets 915,931 875,904
Property, plant and equipment, net 664,535 720,326
Goodwill and intangible assets, net 644,749 677,436
Other assets 42,608 73,308
Total assets $2,267,823 $2,346,974
============ ========== ==========
LIABILITIES
Current maturities of long-term debt and capital
leases, including notes payable $22,993 $49,365
Accounts payable 125,360 87,176
Other current liabilities 244,652 242,428
------------------------- ------- -------
Total current liabilities 393,005 378,969
Long-term debt and capital leases 314,675 436,592
Other liabilities 226,700 263,958
----------------- ------- -------
Total liabilities 934,380 1,079,519
KENNAMETAL SHAREOWNERS' EQUITY 1,315,500 1,247,443
NONCONTROLLING INTERESTS 17,943 20,012
Total liabilities and equity $2,267,823 $2,346,974
============================ ========== ==========
SEGMENT DATA (UNAUDITED) Three Months Ended Year Ended
June 30, June 30,
(in thousands) 2010 2009 2010 2009
-------------- ---- ---- ---- ----
Outside Sales:
Metalworking Solutions
and Services Group $314,796 $218,827 $1,098,845 $1,191,759
Advanced Materials
Solutions Group 223,846 167,210 785,222 808,100
Total outside sales $538,642 $386,037 $1,884,067 $1,999,859
=================== ======== ======== ========== ==========
Sales By Geographic
Region:
United States $245,771 $176,751 $839,168 $907,967
International 292,871 209,286 1,044,899 1,091,892
Total sales by
geographic region $538,642 $386,037 $1,884,067 $1,999,859
================== ======== ======== ========== ==========
Operating Income (Loss):
Metalworking Solutions
and Services Group $45,176 $(29,401) $70,191 $(19,180)
Advanced Materials
Solutions Group 43,327 13,536 121,178 (39,539)
Corporate and
eliminations (1) (27,518) (8,804) (98,141) (41,099)
Total operating income
(loss) $60,985 $(24,669) $93,228 $(99,818)
====================== ======= ======== ======= ========
(1) Includes corporate functional shared services and intercompany
eliminations.
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, operating expense, operating income, Corporate operating loss, MSSG operating income and margin, AMSG operating income and margin, income from continuing operations, net income and diluted earnings per share 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 in 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 JUNE 30, 2010 (UNAUDITED)
(in thousands, except per
share
amounts) Gross Operating Operating
-------- Profit Expense Income
------ ------- ------
2010 Reported Results $199,515 $123,361 $60,985
Restructuring and related
charges 1,219 (46) 13,290
2010 Adjusted Results $200,734 $123,315 $74,275
===================== ======== ======== =======
(in thousands, except per
share Income from
amounts) Continuing Net Diluted
-------- Operations(2) Income(2) EPS
------------- --------- ---
2010 Reported Results $40,584 $40,584 $0.49
Restructuring and related
charges 9,681 9,681 0.12
2010 Adjusted Results $50,265 $50,265 $0.61
===================== ======= ======= =====
(in thousands, except
percents) Corporate MSSG AMSG
--------------------- Operating Operating Operating
Loss Income Income
---- ------ ------
2010 Reported Results $(27,518) $45,176 $43,327
2010 Reported Operating
Margin 14.4% 19.4%
Restructuring and related
charges 255 11,836 1,199
2010 Adjusted Results $(27,263) $57,012 $44,526
===================== ======== ======= =======
2010 Adjusted Operating
Margin 18.1% 19.9%
======================= ==== ====
(2) Represents amounts attributable to Kennametal Common Shareowners.
THREE MONTHS ENDED JUNE 30, 2009 (UNAUDITED)
(in thousands, except per
share amounts)
------------------------- Gross Operating Operating
Profit Expense Loss
------ ------- ----
2009 Reported Results $98,829 $104,024 $(24,669)
Restructuring and related
charges 3,961 (996) 21,171
Loss on divestiture and
related - - -
charges --- --- ---
-------
2009 Adjusted Results $102,790 $103,028 $(3,498)
===================== ======== ======== =======
(in thousands, except per
share amounts) Loss from
------------------------- Continuing Net Diluted
Operations(2) Loss(2) EPS
------------- ------- ---
2009 Reported Results $(15,819) $(32,993) $(0.45)
Restructuring and related
charges 6,065 6,065 0.08
Loss on divestiture and
related - 17,258 0.24
charges --- ------ ----
-------
2009 Adjusted Results $(9,754) $(9,670) $(0.13)
===================== ======= ======= ======
(in thousands, except
percents) Corporate MSSG AMSG
--------------------- Operating Operating Operating
Loss Loss Income
---- ---- ------
2009 Reported Results $(8,804) $(29,401) $13,536
2009 Reported Operating
Margin (13.4%) 8.1%
Restructuring and related
charges 2,945 13,614 4,612
------------------------- ----- ------ -----
2009 Adjusted Results $(5,859) $(15,787) $18,148
===================== ======= ======== =======
2009 Adjusted Operating
Margin (7.2%) 10.9%
======================= ====== ====
YEAR ENDED JUNE 30, 2010 (UNAUDITED)
(in thousands, except per
share amounts)
------------------------- Gross Operating Operating
Profit Expense Income
------ ------- ------
2010 Reported Results $627,728 $477,487 $93,228
Restructuring and related
charges 3,832 (1,145) 48,900
Loss on divestiture and
related - - -
charges --- --- ---
-------
2010 Adjusted Results $631,560 $476,342 $142,128
===================== ======== ======== ========
(in thousands, except per
share amounts) Income from
------------------------- Continuing Net Diluted
Operations(2) Income(2) EPS
------------- --------- ---
2010 Reported Results $47,842 $46,419 $0.57
Restructuring and related
charges 42,413 42,413 0.52
Loss on divestiture and
related - 1,340 0.01
charges --- ----- ----
-------
2010 Adjusted Results $90,255 $90,172 $1.10
===================== ======= ======= =====
YEAR ENDED JUNE 30, 2009 (UNAUDITED)
(in thousands, except per
share amounts) Gross Operating Operating
------------------------- Profit Expense (Loss)
------ ------- Income
------
2009 Reported Results $576,539 $489,567 $(99,818)
Restructuring and related
charges 10,860 182 73,292
Asset impairment charges - - 111,042
Loss on divestiture and
related - - -
charges --- --- ---
-------
2009 Adjusted Results $587,399 $489,749 $84,516
===================== ======== ======== =======
(in thousands, except per Net
share amounts) (Loss) (Loss) Diluted
------------------------- Income from Income(2) EPS
Continuing --------- ---
Operations(2)
-------------
2009 Reported Results $(102,402) $(119,742) $(1.64)
Restructuring and related
charges 60,020 60,020 0.82
Asset impairment charges 101,200 101,200 1.38
Loss on divestiture and
related - 17,657 0.24
charges --- ------ ----
-------
2009 Adjusted Results $58,818 $59,135 $0.80
===================== ======= ======= =====
FREE OPERATING CASH FLOW (UNAUDITED) Year Ended
June 30,
(in thousands) 2010 2009
-------------- ---- ----
Net cash flow provided by operating activities $164,828 $192,263
Purchases of property, plant and equipment (56,679) (104,842)
Proceeds from disposals of property, plant and
equipment 5,141 2,914
---------------------------------------------- ----- -----
Free operating cash flow $113,290 $90,335
======================== ======== =======
First Call Analyst:
FCMN Contact: deborah.mullen@kennametal.com
SOURCE: Kennametal Inc.
CONTACT: Investor Relations, Quynh McGuire, +1-724-539-6559, or Media
Relations, Joy Chandler, +1-724-539-4618, both of Kennametal Inc.
Web Site: http://www.kennametal.com/