Total revenues for the equipment and parts manufacturer were consistent from year to year, topping out at $612 million for the quarter. And while gross profit also remained consistent, the company posted a $164 million net profit for the quarter, compared to $38 million for the same period last year.
The increase in net income, Kennametal reported, was due to a $230 million gain recognised during the quarter for segments of its business that the company is in the process of divesting, including a high-speed steel manufacturing business in the UK.
“We now have created a strong foundation,” said company chief Carlos Cardoso, who went on to extol the virtues of the company’s current plan to divest non-core businesses and focus on its core manufacturing segment.
“We are very pleased with the results for fourth quarter 2006 and fiscal year 2006,” he said.
“Kennametal is focused on serving customers’ needs through innovative technology and solutions.”
One announcement the company made earlier this year that has surely aided in the company’s confidence for the year is its opening of a new manufacturing facility in Brazil, a move it said in March was in support of growing customer demand. The 75,000 square foot facility is located in Indaiatuba in Brazil’s industrial district and will support custom tooling and engineered components operations.
