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Sep 30, 2020
Kennametal Q1 2021 Earnings Report
Kennametal's first quarter of fiscal year 2021 experienced a sales decrease but outperformed seasonal expectations, driven by simplification/modernization initiatives and cost control.
Key Takeaways
Kennametal reported a 23% year-over-year decrease in sales to $400 million for the first quarter of fiscal year 2021, but sales increased 6% sequentially, outpacing the normal seasonal decline. The company reported a loss per share of $0.26, compared to earnings per share of $0.08 in the prior year quarter, and adjusted EPS of $0.03, compared with adjusted EPS of $0.17 in the prior year quarter. Strong execution on simplification/modernization initiatives and cost control measures helped protect margins, with $22 million in incremental benefits from these initiatives.
Sales decreased 23% year-over-year to $400 million, but increased 6% sequentially, outpacing the normal seasonal decline.
Early wins in fit-for-purpose market segment driven by commercial excellence.
Simplification/modernization initiatives and cost control measures protected margins, yielding $22 million in incremental benefits.
Company maintains a strong cash balance and liquidity position.
Revenue by Geographic Location
Forward Guidance
While there are signs of improvement, overall global market conditions remain unpredictable and visibility into primary end markets remains limited. Therefore, the Company will not be providing an FY21 outlook at this time, outside of capital spending, which is unchanged and expected to be between $110 million and $130 million. The Company will provide more details regarding its second quarter assumptions on its conference call.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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