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Mar 31, 2021
Kennametal Q3 2021 Earnings Report
Kennametal's third quarter results for fiscal year 2021 were announced, showcasing sequential sales growth and solid execution of strategic initiatives.
Key Takeaways
Kennametal reported sales of $485 million, a 10% increase sequentially, with EPS of $0.26 and adjusted EPS of $0.32. The company generated strong cash flow, with $139 million from operations year-to-date and $46 million in free operating cash flow. Incremental simplification/modernization benefits were approximately $18 million for the quarter.
Sales increased 10 percent sequentially, outperforming expectations.
Generated strong third quarter cash, delivering year-to-date cash flow from operations of $139 million and free operating cash flow of $46 million.
Achieved approximately $18 million in incremental simplification/modernization benefits in the third quarter.
Sales are expected to be up mid-single digits sequentially in the fourth quarter due to continued market recovery and commercial excellence.
Revenue by Geographic Location
Forward Guidance
For the fourth quarter, Kennametal expects sales to be up mid-single digits sequentially and adjusted operating margin to modestly improve sequentially. Capital spending is expected to be approximately $120 million for FY21.
Positive Outlook
- Sales are expected to be up mid-single digits sequentially.
- Adjusted operating margin is expected to modestly improve sequentially.
- Continued market recovery.
- Commercial excellence initiatives.
- Disciplined execution.
Challenges Ahead
- Customer supply chain challenges.
- Semiconductor shortage issue in Transportation.
- Uncertainty from COVID-19 related restrictions, primarily in EMEA and parts of Asia Pacific.
- Unpredictable global market conditions.
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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