Kennametal ends year on record high

DUE in part to demand and higher prices, US tool manufacturer Kennemetal reported a 26% increase in earnings in its fourth quarter, as well as record profits for the full year.

Donna Schmidt

Net income in the company’s fourth quarter was $US37.7 million, up from $US29.9 million last year. Profits for the full year totalled $US119 million (versus $US74 million in the prior year) on sales of $US2.3 billion.

Both its quarterly results and full-year sales figures were records for the Pennsylvania-based organisation, the second largest metalworking company in the world.

“Each of our three business groups, Metalworking Solutions and Services, Advanced Materials Solutions, and J&L Industrial Supply, performed at record levels in both sales and earnings,” said Kennametal chief Markos Tambakeras. “Market penetration, pricing and the underlying strength of our served end-markets all contributed to our performance.

“Kennametal’s results in financial year 2005 are a function of the successful implementation of our transformation strategy that is rapidly expanding our advanced materials and engineered components portfolio, balancing the mix of our end-market sales and further enhancing our value-based selling proposition with our customers.”