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COVID-19: How Kennametal is responding

LATROBE, Pa., Jan. 29, 2015 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) today reported results for the fiscal second-quarter 2015, with loss per diluted share (LPS) of $4.89, compared with the prior year quarter earnings per diluted share (EPS) of $0.30. Adjusted EPS were $0.52 in the current quarter compared with $0.50 in the prior year quarter.

Kennametal President and Chief Executive Officer Don Nolan said, "I'm encouraged by the talent, technologies and innovation inside our company. They reflect the inherent potential we possess to generate value over the long-term.  While the current weakness in our end markets adversely affected our results, and the nature and magnitude of the impairment charge is disappointing, they also illustrate many opportunities for improving our operations and business portfolio."

"As attractive as our future may be, Kennametal also faces some serious challenges given that we have underperformed and missed investor expectations.  It's clear we have some immediate work to do to deliver better performance by driving organic sales growth, getting our portfolio right and aligning our cost structure accordingly.  We are taking additional actions to further reduce our manufacturing footprint and administrative overhead with a newly announced restructuring initiative, Phase 2. These key priorities—portfolio, cost structure and core growth with an accountable, customer-focused culture—are central to developing a path forward that will maximize profitability and generate improved shareholder returns." 

Fiscal 2015 Second Quarter Key Developments

  • Sales were $676 million, compared with $690 million in the same quarter last year. Sales decreased by 2 percent, reflecting decreases of 4 percent due to unfavorable currency exchange and a 2 percent organic decline, offset partially by a 3 percent increase from acquisition and a 1 percent increase due to more business days.
  • During the December quarter, the company performed an interim impairment test of goodwill and indefinite-lived intangible assets for its Infrastructure segment. This preliminary test was undertaken in view of the recent abrupt change in the global energy market, coupled with the severe and persistent decline in the earthworks markets. The test resulted in an estimated non-cash pre-tax goodwill and other intangible asset impairment charge of $377 million, or $5.24 per share. The valuation will be completed in the company's fiscal third quarter. The company also recorded a non-cash impairment charge of $5 million or $0.04 per share for an Infrastructure technology asset. Given the significant impairment charges, Infrastructure portfolio actions will be the initial focus.
  • Phase 1 restructuring and related charges amounted to $13 million pre-tax, or $0.13 per share in the quarter. Pre-tax benefits realized in the quarter were approximately $6 million or $0.07 per share. Total pre-tax benefits from this program are estimated to be $50-$55 million in annual savings, and total pre-tax charges are projected to be in the range of $55-$60 million through fiscal 2016.
  • Operating loss was $334 million, compared with operating income of $50 million in the same quarter last year. Adjusted operating income of $61 million was flat compared to the prior period. Adjusted operating results in the current period were driven by restructuring benefits and lower employment costs, offset by organic decline and unfavorable mix in Infrastructure, and unfavorable currency exchange. Adjusted operating margin was 9.1 percent in the current period and 8.9 percent in the prior period.
  • The effective tax rate was a negative 12.7 percent (provision on a loss), compared with 40.8 percent (provision on income) in the prior year. The adjusted effective tax rate was 17.7 percent in the current quarter and 23.8 percent in the prior period. The decrease was primarily driven by the extension of the credit for increase in research activities contained in the Tax Increase Prevention Act of 2014 that was enacted during the current quarter and the mix of pre-tax book income in jurisdictions with different tax rates.
  • LPS was $4.89, compared with the prior year quarter EPS of $0.30. Adjusted EPS were $0.52 in the current quarter and $0.50 in the prior year quarter.
  • Adjusted return on invested capital (ROIC) was 7.9 percent as of December 31, 2014 and reflects the impact of the goodwill and other intangible asset impairment charges of $382 million, offset partially by increased debt in the near term from recent acquisitions.
  • The company generated $135 million in cash flow from operating activities for the six months ended December 31, 2014, compared with $85 million in the prior year period. Net capital expenditures were $54 million and $48 million for the same periods. The company realized free operating cash flow of $82 million compared with $36 million for the same period last year.

Segment Developments for the Fiscal 2015 Second Quarter

  • Industrial segment sales of $372 million remained flat compared with $371 million in the prior year quarter due to increases of 2 percent from organic growth, 1 percent net from acquisition and divestiture and 1 percent due to more business days, offset partially by unfavorable currency exchange of 4 percent. Sales increased 3 percent in general engineering and 2 percent in transportation, while aerospace and defense remained relatively flat. General engineering increased due to sales in the indirect channel and to tier suppliers in the Americas, and the transportation market increased due to new project tooling package sales in the Asia region. On a regional basis sales increased approximately 14 percent in Asia and 3 percent in the Americas, offset partially by a decrease of 1 percent in Europe.
  • Industrial segment operating income was $42 million compared with $33 million in the prior year. Adjusted operating income was $48 million compared to $40 million in the prior year quarter, benefiting from organic growth, restructuring initiatives, and lower employment costs. Industrial adjusted operating margin was 12.8 percent compared with 10.9 percent in the prior year.
  • Infrastructure segment sales of $304 million decreased 5 percent from $319 million in the prior year. The decrease was driven by 8 percent organic sales decline and 3 percent unfavorable currency exchange, offset partially by 5 percent increase from acquisition and 1 percent due to more business days. Sales decreased by 6 percent in earthworks and 3 percent in energy. Earthworks sales declined from persistently weak underground and surface mining globally, particularly in the U.S. and Asia, combined with reduced demand for road rehabilitation tools and less infrastructure development activity in China. Energy sales decreased due to lower activity in power generation, while oil and gas sales were relatively flat year over year. In addition, the prior year included sales related to surface finishing projects that did not repeat in the current period. On a regional basis, sales decreased 14 percent in Europe, 9 percent in Asia and 2 percent in the Americas.
  • Infrastructure segment operating loss was $372 million, compared with operating income of $19 million in the same quarter of prior year. During the quarter a non-cash pre-tax goodwill and intangible asset impairment charge of $377 million was recorded related to the deterioration of the earthworks and energy markets and an impairment charge of $5 million was also recorded for an Infrastructure technology asset. Adjusted operating income was $15 million compared to $23 million in the prior year quarter. Adjusted operating income decreased due to lower organic sales as well as an unfavorable mix, partially offset by the benefits of the restructuring initiatives and lower employment costs. Infrastructure adjusted operating margin was 5.0 percent compared with 7.3 percent in the prior year.

Fiscal 2015 First Half Key Developments

  • Sales were $1,371 million, compared with $1,310 million in the same period last year. Sales increased by 5 percent, driven by 7 percent growth from acquisition and 1 percent increase due to more business days, partially offset by a 2 percent decline due to unfavorable currency exchange and 1 percent organic decline.
  • Operating loss was $273 million, compared with operating income of $109 million in the same period last year. Adjusted operating income was $130 million in the current period, compared with adjusted operating income of $121 million in the prior year, which included a non-recurring inventory charge of approximately $6 million. Adjusted operating margin was 9.5 percent, compared with 9.3 percent in the prior year.
  • LPS was $4.40 in the current year period, compared with EPS of $0.78 the prior year period. Adjusted EPS were $1.09 in the current year period and $0.99 in the prior year period.

Phase 2 Restructuring Program

The company has identified additional actions to streamline the company's cost structure with Phase 2 of restructuring initiatives. This is estimated to achieve an additional $40-$50 million of annualized savings and will incur $90-$100 million of pre-tax charges as it is being implemented over the next 12 to 24 months. These initiatives are expected to enhance operational efficiencies through the rationalization of certain manufacturing facilities as well as other employment and cost reduction programs. On a combined basis, both Phase 1 and Phase 2 restructuring programs are expected to produce annual ongoing pre-tax permanent savings of $90-$105 million. Together, total pre-tax charges for these initiatives are expected to be approximately $145-$160 million.

 

RESTRUCTURING AND RELATED CHARGES AND SAVINGS




Estimated
Charges

Charges To
Date

Estimated Annualized
Savings

Savings To
Date

Expected
Completion Date

Phase 1

$55M-$60M

$39M

$50M-$55M

$12M

6/30/2016

Phase 2

$90M-$100M

$40M-$50M

12/31/2016

Total

$145M-$160M

$39M

$90M-$105M

$12M


 

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.

Outlook

Due to current high levels of uncertainty in the global economy, visibility is very limited regarding demand in some of Kennametal's served end markets and ultimately will affect the company's sales, earnings and cash flow. For fiscal 2015, Kennametal revised its outlook to reflect a weaker economic environment for the remainder of the fiscal year.

The company expects fiscal 2015 total sales to decline in the range of 6 to 7 percent and organic sales to decline in the range of 4 to 5 percent. Previously, total sales growth was projected to be in the range of 2 to 4 percent, with organic sales growth of 1 to 3 percent. Based on the revised forecast, Kennametal expects adjusted EPS for fiscal 2015 to range from $1.90 to $2.10, compared with the previous range of $2.80 to $3.00. The primary driver for the change in earnings relates to a further reduction to Infrastructure segment sales, due to a rapid decline in the oil and gas markets, as well as continued weak demand from the mining industry. The industrial segment is also expected to be negatively impacted by further weakening in the Eurozone. In addition, foreign exchange is expected to be a notable headwind related to recent currency fluctuations, particularly the U.S. dollar to Euro exchange rate. While near-term conditions are challenging, the company is in the process of developing a path forward that will result in improved shareholder returns.

The company expects to generate cash flow from operations between $270 million and $295 million for fiscal 2015, compared with its previous outlook of $280 million to $310 million. Based on anticipated capital expenditures of approximately $110 million to $115 million, the company expects to generate between $160 million and $180 million of free operating cash flow for the fiscal year.

Kennametal is committed to maintaining investment-grade credit ratings. Cash from operations, as well as any working capital reductions, will be primarily for the purpose of debt reduction. The company's capital allocation process will include disciplined capital investments in the business, as well as returning cash to shareholders through dividends and share repurchases.

Dividend Declared

Kennametal also announced that its board of directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable February 25, 2015 to shareholders of record as of the close of business on February 10, 2015.

The company will discuss its fiscal 2015 second-quarter results in a live webcast at 10:00 a.m. Eastern Time today. This event will be broadcast live on the company's website, www.kennametal.com. To access the webcast, select "Investor Relations" and then "Events." A recorded replay of this event also will be available on the company's website through March 1, 2015.

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 2015 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; 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; demand for and market acceptance of our products; integrating acquisitions and achieving the expected savings and synergies; business divestitures; global or regional catastrophic events; energy costs; commodity prices; labor relations; demand for and market acceptance of new and existing products; 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.

Celebrating more than 75 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers seeking peak performance in demanding environments. The company provides innovative wear-resistant products, application engineering and services backed by advanced material science, serving customers in 60 countries across diverse sectors of aerospace, earthworks, energy, industrial production, transportation and infrastructure. With approximately 14,000 employees and nearly $3 billion in sales, the company realizes half of its revenue from outside North America, and over 40% globally from innovations introduced in the past five years. Recognized among the "World's Most Ethical Companies" (Ethisphere); "Outstanding Corporate Innovator" (Product Development Management Association); and "America's Safest Companies" (EHS Today) with a focus on 100% safety, Kennametal and its foundation invest in technical education, industrial technologies and material science to deliver the promise of progress and economic prosperity to people everywhere. For more information, visit the company's website at www.kennametal.com.

 

 

FINANCIAL HIGHLIGHTS


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


















Three Months Ended
December 31,

Six Months Ended
December 31,

(in thousands, except per share amounts)

2014


2013

2014


2013

Sales

$

675,631



$

689,936


$

1,370,572



$

1,309,743


Cost of goods sold

476,173



482,965


953,015



904,536


   Gross profit

199,458



206,971


417,557



405,207


Operating expense

137,459



148,421


285,947



282,685


Restructuring and asset impairment charges

388,839



2,310


390,402



2,310


Amortization of intangibles

6,931



6,524


13,959



11,667


   Operating (loss) income

(333,771)



49,716


(272,751)



108,545


Interest expense

7,960



8,037


16,170



15,118


Other expense, net

2,223



856


409



1,466


   (Loss) income from continuing operations before income
    taxes

(343,954)



40,823


(289,330)



91,961


  Provision for income taxes

43,751



16,656


58,248



29,236


Net (loss) income

(387,705)



24,167


(347,578)



62,725


Less: Net income (loss) attributable to noncontrolling interests

597



(42)


1,236



679


Net (loss) income attributable to Kennametal

$

(388,302)



$

24,209


$

(348,814)



$

62,046


PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS




Basic (loss) earnings per share

$

(4.89)



$

0.31


$

(4.40)



$

0.79


Diluted (loss) earnings per share

$

(4.89)



$

0.30


$

(4.40)



$

0.78


Dividends per share

$

0.18



$

0.18


$

0.36



$

0.36


Basic weighted average shares outstanding

79,343



78,729


79,229



78,587


Diluted weighted average shares outstanding

79,343



79,776


79,229



79,597


 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)










(in thousands)

December 31, 2014


June 30, 2014

ASSETS




Cash and cash equivalents

$

146,267



$

177,929


Accounts receivable, net

449,166



531,515


Inventories

662,883



703,766


Other current assets

115,671



111,986


Total current assets

1,373,987



1,525,196


Property, plant and equipment, net

843,101



884,458


Goodwill and other intangible assets, net

889,818



1,318,752


Other assets

145,537



139,680


Total assets

$

3,252,443



$

3,868,086


LIABILITIES




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

$

95,513



$

80,117


Accounts payable

159,464



206,891


Other current liabilities

273,727



275,748


Total current liabilities

528,704



562,756


Long-term debt and capital leases

867,103



981,666


Other liabilities

326,049



362,056


Total liabilities

1,721,856



1,906,478


KENNAMETAL SHAREHOLDERS' EQUITY

1,499,320



1,929,256


NONCONTROLLING INTERESTS

31,267



32,352


Total liabilities and equity

$

3,252,443



$

3,868,086


















SEGMENT DATA (UNAUDITED)

Three Months Ended
December 31,

Six Months Ended
December 31,

(in thousands)

2014


2013

2014


2013

Outside Sales:







Industrial

$

371,557



$

370,647


$

749,415



$

708,876


Infrastructure

304,074



319,289


621,157



600,867


Total outside sales

$

675,631



$

689,936


$

1,370,572



$

1,309,743


Sales By Geographic Region:







North America

$

319,495



$

302,032


$

654,065



$

571,566


Western Europe

183,583



215,688


374,437



403,289


Rest of World

172,553



172,216


342,070



334,888


Total sales by geographic region

$

675,631



$

689,936


$

1,370,572



$

1,309,743


Operating Income (Loss):







Industrial

$

41,795



$

33,218


$

85,812



$

73,038


Infrastructure

(371,920)



18,604


(352,699)



40,294


Corporate (1)

(3,646)



(2,106)


(5,864)



(4,787)


Total operating (loss) income

$

(333,771)



$

49,716


$

(272,751)



$

108,545






















(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 (loss) income and margin, net (loss) income, diluted (LPS) EPS, effective tax rate, Industrial sales, operating income and margin, Infrastructure sales, operating income and margin, free operating cash flow and return on invested capital (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 DECEMBER 31, 2014 - (UNAUDITED)






(in thousands, except
percents)

Sales

Gross
Profit

Operating
Expense

Operating
(Loss)
Income

Net (Loss)
Income
(2)

Diluted
(LPS)
EPS

Effective
Tax Rate

2015 Reported Results

$  675,631

$  199,458

$  137,459

$  (333,771)

$  (388,302)

$  (4.89)

(12.7)%

2015 Reported Margins


29.5%

20.3%

(49.4)%




  Restructuring and
  
related charges (3)

2,677

(3,415)

12,930

10,385

0.13

2.3

  Technology asset
   impairment charge

5,500

3,377

0.04

2.0

  Goodwill and other
   intangible asset
   impairment charges

376,500

415,896

5.24

26.1

2015 Adjusted Results

$  675,631

$  202,135

$  134,044

$     61,159

$     41,356

$   0.52

17.7%

2015 Adjusted Margins


29.9%

19.8%

9.1%




(2) Represents amounts attributable to Kennametal Shareholders.

(3) Includes pre-tax restructuring related charges recorded in corporate of $1,844.

 















THREE MONTHS ENDED DECEMBER 31, 2014 - (UNAUDITED)




(in thousands, except percents)

Industrial
Sales

Industrial
Operating Income

Infrastructure
Sales

Infrastructure
Operating (Loss)
Income

2015 Reported Results

$  371,557

$  41,795

$  304,074

$  (371,920)

2015 Reported Operating Margin


11.2%


(122.3)%

  Restructuring and related charges (4)

5,921

5,165

Technology asset impairment charge

5,500

  Goodwill and other intangible asset
    impairment charges

376,500

2015 Adjusted Results

$  371,557

$  47,716

$  304,074

$    15,245

2015 Adjusted Operating Margin


12.8%


5.0%

(4) Excludes pre-tax restructuring related charges recorded in corporate of $1,844.

 























THREE MONTHS ENDED DECEMBER 31, 2013 - (UNAUDITED)



(in thousands, except
percents)

Sales

Gross
Profit

Operating
Expense

Operating
Income

Net
Income
(2)

Diluted
EPS

Effective
Tax Rate

2014 Reported Results

$  689,936

$  206,970

$  148,421

$  49,716

$  24,209

$  0.30

40.8%

2014 Reported Margins


30.0%

21.5%

7.2%




  TMB inventory step-up

7,699

7,699

5,749

0.07

(2.5)

  TMB acquisition-
   
related charges

26

(1,713)

1,738

1,258

0.02

(0.3)

 Restructuring and
   
related charges

2,310

1,733

0.02

(0.6)

 Tax repatriation
   expense

7,170

0.09

(13.6)

2014 Adjusted Results

689,936

214,695

146,708

61,463

40,119

0.50

23.8%

2014 Adjusted Margins


31.1%

21.3%

8.9%




 















(in thousands, except percents)

Industrial
Sales

Industrial Operating
Income

Infrastructure
Sales

Infrastructure
Operating Income

2014 Reported Results

$

370,647


$

33,218


$

319,289


$

18,604


2014 Reported Operating Margin


9.0%



5.8%


  TMB inventory step-up


5,390



2,309


  TMB acquisition-related charges


609



1,129


  Restructuring and related charges


1,085



1,225


2014 Adjusted Results

$

370,647


$

40,302


$

319,289


$

23,267


2014 Adjusted Operating Margin


10.9%



7.3%


 















SIX MONTHS ENDED DECEMBER 31, 2014 - (UNAUDITED)




(in thousands, except percents)

Sales

Operating
(Loss)
Income

Net (Loss)
Income
(2)

Diluted
(LPS) EPS

2015 Reported Results

$

1,370,572


$

(272,751)


$

(348,814)


$

(4.40)


 2015 Reported Operating Margin


(19.9)%




  Restructuring and related charges (3)


20,375


15,941


0.20


Technology asset impairment charge


5,500


3,377


0.04


  Goodwill and other intangible asset impairment
    charges


376,500


415,896


5.25


2015 Adjusted Results

$

1,370,572


$

129,624


$

86,400


$

1.09


2015 Adjusted Operating Margin


9.5 %




 















SIX MONTHS ENDED DECEMBER 31, 2013 - (UNAUDITED)




(in thousands, except percents)

Sales

Operating
Income

Net Income (2)

Diluted EPS

2014 Reported Results

$

1,309,743


$

108,545


$

62,046


$

0.78


2014 Reported Operating Margin


8.3%




  TMB inventory step-up


7,699


5,749


0.07


  TMB acquisition-related charges


2,836


2,065


0.03


  Restructuring and related charges (5)


2,310


1,700


0.02


  Tax repatriation expense



7,170


0.09


2014 Adjusted Results

$

1,309,743


$

121,390


$

78,730


$

0.99


2014 Adjusted Operating Margin


9.3%




(5) Included pre-tax restructuring related charges recorded in corporate of $1,098.

 











FREE OPERATING CASH FLOW (UNAUDITED)


Six Months Ended



December 31,

(in thousands)


2014


2013

Net cash flow from operating activities


$

135,322



$

84,617


Purchases of property, plant and equipment


(54,672)



(48,804)


Proceeds from disposals of property, plant and equipment


978



444


Free operating cash flow


$

81,628



$

36,257


 

RETURN ON INVESTED CAPITAL (UNAUDITED)
December 31, 2014 (in thousands, except percents)


























Invested Capital


12/31/2014


9/30/2014


6/30/2014


3/31/2014


12/31/2013


Average

Debt


$

962,616



$

1,015,863



$

1,061,783



$

1,135,553



$

1,145,729



$

1,064,309


Total equity


1,530,587



1,954,254



1,961,608



1,934,558



1,903,304



1,856,862


Total


$

2,493,203



$

2,970,117



$

3,023,391



$

3,070,111



$

3,049,033



$

2,921,171






Three Months Ended

Interest Expense




12/31/2014


9/30/2014


6/30/2014


3/31/2014


Total

Interest expense




$

7,960



$

8,210



$

8,450



$

8,883



$

33,503


Income tax benefit












9,227


Total interest expense, net of tax










$

24,276


Net (Loss) Income




12/31/2014


9/30/2014


6/30/2014


3/31/2014


Total

Net (loss) income
  attributable to
  Kennametal, as
  reported




(388,302)



39,488



45,455



50,865



(252,494)


TMB acquisition-
related 
charges








1,914



1,703



3,617


Restructuring and
related 
charges




10,385



5,557



13,874



1,747



31,563


Goodwill and other
   intangible asset
   impairment charges




415,896









415,896


Technology asset
  impairment charge




3,377









3,377


Loss on divestiture








1,607





1,607


Noncontrolling interest




597



639



2,024



1,129



4,389


Net income, adjusted




41,953



45,684



64,874



55,444



207,955


Total interest expense, net of tax










24,276














$

232,231


Average invested capital











$

2,921,171


Adjusted Return on Invested Capital










7.9 %


Return on invested capital calculated utilizing net income, as reported is as follows:



Net (loss) income attributable to Kennametal, as reported


$

(252,494)


Total interest expense, net of tax


24,276




$

(228,218)


Average invested capital


$

2,921,171


Return on Invested Capital


(7.8)%


 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kennametal-announces-fiscal-second-quarter-2015-results-and-accelerates-cost-reduction-initiatives-300027503.html

SOURCE Kennametal Inc.