Kennametal Inc has reported sales of US$639 million in Q3, compared with US$755 million in the same quarter last year. Sales decreased by 15%, reflecting a 9% organic decline and a 6% unfavorable currency exchange impact.
Fiscal 2015 year-to-date sales were US$2,010 million, compared with US$2,065 million in the same period last year while operating loss was US$393 million, compared with operating income of US$185 million in the same period last year.
‘Progress on our accelerated cost reduction measures facilitated better than expected performance for the March quarter,’ said Kennametal president and CEO Don Nolan. ‘However, it was necessary to record an additional impairment charge due to a continued decline in the end market outlook related to our infrastructure segment.’
The company has identified additional actions to’streamline the company's cost structure’ in order to achieve an additional US$25-$30 million of annualized savings and incur US$40-$45 million of pre-tax charges as it is being implemented over the next 24 months. ‘These initiatives are expected to enhance operational efficiencies through an enterprise-wide cost reduction program as well as the consolidation of certain manufacturing facilities,’ the company said.
This story is reprinted from material from Kennametal, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.