Kennametal Inc. today announced that, due to ongoing sales growth, higher than expected price realization, lower raw material costs and strong operating leverage, diluted earnings per share (EPS) for the first quarter of fiscal year 2006 is expected to be approximately $0.72, which includes $0.05 per share related to stock option expenses as required by FAS 123R and domestic pension expenses of $0.04 per share. This represents an increase from previous EPS guidance of $0.40 to $0.50 for the first quarter of fiscal year 2006. As recently reported, the company's orders for the first quarter of fiscal year 2006 reflect continuing strength, resulting in an estimated 18% EPS increase as compared to first-quarter EPS of $0.61 for the prior year.
EPS for fiscal year 2006 is now expected to be $3.50 to $3.90. This revised earnings outlook represents an increase from previous 2006 EPS guidance of $3.30 to $3.80, and reflects the company's expectation of a continuing favorable market outlook and price realization. In addition to narrowing the earnings guidance range, the revised outlook establishes a lower range that reflects a 12% increase, and a higher range that reflects a 25% increase from prior year EPS of $3.13.
The company's management team will discuss the outlook for the remainder of fiscal year 2006 in further detail during a conference call on Wednesday, Oct. 26, 2005, following the release of its first-quarter results. The company will announce results before the opening of the New York Stock Exchange, and the conference call is scheduled for 10 a.m., Eastern time, on that date. This event will be broadcast live on the company's website, www.kennametal.com. Once on the homepage, just click on the link to "Corporate," and then click "Investor Relations." This event also will be available on the company's website through Nov. 9, 2005.
This release contains "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. You can identify these forward-looking statements by the fact they use words such as "should," "anticipate," "estimate," "approximate," "expect," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements are likely to relate to, among other things, our goals, plans and projections regarding our financial position, results of operations, market position, and product development, which are based on current expectations that involve inherent risks and uncertainties, including factors that could delay, divert or change any of them in the next several years. Although it is not possible to predict or identify all factors, they may include the following: global and regional economic conditions; risks associated with the availability and costs of raw materials; commodity prices; risks associated with integrating and divesting businesses and achieving the expected savings and synergies; competition; demands on management resources; risks associated with international markets, such as currency exchange rates and social and political environments; future terrorist attacks; labor relations; demand for and market acceptance of new and existing products; and risks associated with the implementation of restructuring plans and environmental remediation matters. 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.
Kennametal Inc. is a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. The company improves customers' competitiveness by providing superior economic returns through the delivery of application knowledge and advanced technology to master the toughest of materials application demands. Companies producing everything from airframes to coal, from medical implants to oil wells and from turbochargers to motorcycle parts recognize Kennametal for extraordinary contributions to their value chains. Customers buy over $2 billion annually of Kennametal products and services -- delivered by our 14,000 talented employees in over 60 countries -- with almost 50 percent of these revenues coming from outside the United States. Visit us at www.kennametal.com [KMT-E]
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/