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Jun 30, 2021
Kennametal Q4 2021 Earnings Report
Kennametal reported an increase in sales and earnings per share compared to the prior year quarter, driven by strategic initiatives and end-market recovery.
Key Takeaways
Kennametal's Q4 2021 results showed significant improvement with a 36% increase in sales and a shift from loss to earnings per share. The company's strategic initiatives and end-market recovery drove positive momentum.
Sales increased 36 percent year-over-year and 6 percent sequentially.
Earnings per diluted share (EPS) of $0.41 and adjusted EPS of $0.53.
Strong cash flow from operations of $236 million and free operating cash flow of $113 million.
Simplification/modernization achieved total savings of approximately $186 million.
Revenue by Geographic Location
Forward Guidance
The Company’s expectations for the first quarter of fiscal 2022 and the full year are as follows:
Positive Outlook
- Sales are expected to outpace normal seasonality; up 17 - 22 percent compared to the prior year quarter
- Strong operating leverage for the full year
- Free operating cash flow at approximately 100 percent of adjusted net income
- Capital spending is expected to be $110 - $130 million
- Primary working capital trending toward 30 percent of sales by year-end
Challenges Ahead
- Cost headwinds of approximately $15 million from prior year temporary cost controls
- First half headwinds from prior year temporary cost controls of approximately $25 million
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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