Strong sales for the October through December quarter combined with savings from its restructuring and modernization initiatives helped to boost the quarterly net income of Kennametal Inc. to $20.2 million and earnings to 23 cents per share, a turnaround from losses a year ago, the metalworking toolmaker said Monday.
Pittsburgh-based Kennametal, which has a corporate campus in Unity, said its sales of $440.5 million for the second quarter of the company’s 2021 fiscal year were up 10% from the July through September quarter, but were down from $505 million from the October through December quarter in 2019. Sales outpaced expectations, with improvements mostly in the transportation and general engineering end markets, the company said.
Kennametal’s net income of $20.2 million rose from a loss of $6.2 million and its earnings of 23 cents per share was 30 cents better than the 7-cent-a-share loss from a year ago.
The company benefited from $23 million in savings in the quarter through its modernization and restructuring programs, part of the $180 million in cumulative cost savings from those efforts.
The company expects sales in the January through March quarter to exceed normal seasonal trends, Kennametal CEO Christopher Rossi said in a statement.
Kennametal’s shares closed at $39.32, up $1.44 a share or 3.8%. Kennametal’s stock is trading near its 52-week-high of $41.80.
