Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News  >  Business Leaders  >  All news

Business Leaders

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 
HomeAll newsMost read newsBusiness Leaders Biography 
The feature you requested does not exist. However, we suggest the following feature:

Kennametal : expects to consolidate plants as it shrinks manufacturing

07/30/2015 | 02:13pm US/Eastern

July 30-- value="NYSE:KMT" idsrc="xmltag.org">Kennametal Inc. has cut more than 800 people from its global workforce under a restructuring program meant to reduce costs as sales to energy companies plummet.

CEO value="APIN:3763803276">Don Nolan said Thursday that the Unity-based tooling company eliminated 6 percent of its 13,500 employees. The company also has closed six plants, sold one and is consolidating two others as it shrinks its manufacturing footprint and tries to increase profitability.

"We've been working hard to improve the business and we're beginning to see some of the benefits," Nolan told analysts on a conference call to discuss earnings for the April-June period, the fourth quarter of the company's fiscal year.

Nolan, who became CEO in November, selling off less-profitable parts of the company to concentrate on its core business of making drilling and cutting tools for a range of industries. He said he expects the divestitures to represent about $150 million to $250 million of the company's annual sales, though he declined to provide specifics.

"It's not clear which will be sold and at what time," he said.

Investors cheered the cost cutting. value="NYSE:KMT" idsrc="xmltag.org">Kennametal shares were trading up $1, or 3 percent, to $33.67 at noon Thursday.

While Nolan's work is aimed at improving the company's performance in the future, its most recent quarter showed substantial weakness, with profit dropping 54 percent.

value="NYSE:KMT" idsrc="xmltag.org">Kennametal said it had net income of $21.1 million, or 26 cents a share, in the last quarter of its fiscal year. The results compared with net income of $45.5 million, or 57 cents a share, in the same quarter last year.

Sales fell 17 percent to $637.7 million, down from $772.2 million.

Oil and gas companies are buying fewer of value="NYSE:KMT" idsrc="xmltag.org">Kennametal's products as they cut back on drilling activity to deal with low energy prices.

Despite the weak financial performance, Nolan said the company's results were better than expected because efforts to cut costs are working. Operating expense declined 15 percent to $130.9 million.

And the company hit a record level of free operating cash flow of $267 million in the quarter, up from $156 million last year.

Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or anixon@tribweb.com.

Add Alex Nixon to your Google+ circles.

class="shirttail">___

class="shirttail">(c)2015 The Pittsburgh Tribune-Review (Greensburg, Pa.)

class="shirttail">Visit The Pittsburgh Tribune-Review (Greensburg, Pa.) at www.triblive.com

class="shirttail">Distributed by Tribune Content Agency, LLC.

© Tribune Content Agency, source Regional News

React to this article
Latest news about  
1  2  3  4  5  6  7  8  9  10Next

Advertisement
Most Read News 
07/23DJRANDALL STEPHENSON : Why AT&T Chief Randall Stephenson Needs a Slam Dunk
07/24 JEFF BEZOS : Amazon.com CEO Bezos up $8 billion, down $4 billion on stock swing
07/24DJDAVID CORDANI : Anthem Agrees to Buy Cigna for $48 Billion--2nd Update
07/25DJANSHU JAIN : Ex-Deutsche Bank Official Jain Cleared of Misleading Regulators Over Libor Rigging
07/27DJPATRICK DRAHI : Drahi Boosts Media Holdings With NextRadioTV Buy
07/27DJROBIN LI : Investment in Offline Services Hits Baidu Profits
07/28 JACK DORSEY : Twitter CEO Dorsey's criticism of company refreshing, analysts say
More news
Popular Business Leaders 
Jean-michel Aulas Ernesto Bertarelli Vincent Bolloré Martin Bouygues Richard Branson Warren Buffett Stéphane Courbit Serge Dassault Jean-claude Decaux David Einhorn Larry Ellison Pierre Fabre Bill Gates Carl Icahn Steve Jobs Li Ka-shing Kirk Kerkorian Arnaud Lagardère Maurice Lévy Lakshmi Mittal Rupert Murdoch Nelson Peltz François-henri Pinault Ferdinand Piëch Lee Shau Kee Carlos Slim George Soros Donald Trump Alain Weill Guy Wyser-pratte
A-Z Business Leaders