Kennametal quarterly earnings up dramatically
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A year after the pandemic clamped down on the world’s economy, Kennametal Inc. said Monday its net income for the three-month period ending March 31 rose dramatically to $22.9 million from $2.2 million a year ago, even though sales grew only slightly to $484.6 million, from $483 million for the same quarter in 2020.
Kennametal CEO Chris Rossi said the company saw a 10% increase in sales compared to the quarter that ended Dec. 31, and there was growth in manufacturing production. The Pittsburgh-based company with a corporate complex in Unity is “optimistic that the worst of this crisis is behind us, and the momentum of the recovery will continue,” Rossi said in a statement.
Kennametal’s earnings per share reflected the improving economics for the industrial toolmaker, as earnings rose to 26 cents per share, compared to just 4 cents a share a year ago.
Kennametal saw a return to growth, compared to the same quarter in 2020, in its transportation and general engineering business, as well as its markets in the Asia-Pacific region.
Still, even though the worst of the pandemic may be behind them, Rossi said supply chain challenges remain.
Kennametal’s stock rose to $40.97 a share, up 81 cents, or 2.02%, in trading on Monday. The stock is trending close to the 52-week high of $43.04 a share.
The company declared a dividend of 20 cents per share, payable on May 25 to stockholders as of May 11.