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Kennametal Inc. (KMT-1.81%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports sales of $482.1 million for the quarter, a 3% decrease from $495.3 million in the same quarter the previous year. This decline is attributed to an organic sales decrease of 6%, partially offset by a favorable business days effect of 3%.
Operating income for the quarter was $31.7 million, up from $28.5 million in the prior year. The increase is due to lower raw material costs, pricing adjustments, and savings from restructuring initiatives.
The Metal Cutting segment reported sales of $297.8 million, down 4% from the previous year, with an operating income of $16.6 million. The decline in sales is attributed to a 7% organic sales decrease, partially offset by a 3% business days effect.
The Infrastructure segment reported sales of $184.3 million, flat compared to the previous year, with an operating income of $15.6 million. The segment benefited from insurance recoveries and a production credit under the Inflation Reduction Act.
Net income for the quarter was $19.0 million, compared to $24.3 million in the previous year. Earnings per diluted share were $0.23, down from $0.29 in the prior year.
Cash flow from operating activities was $100.9 million for the six months ended December 31, 2024, compared to $88.3 million in the previous year. Capital expenditures were $44.0 million, and the company returned $61.2 million to shareholders through share repurchases and dividends.
Kennametal announced plans to close and consolidate several facilities by the end of fiscal 2027, expecting to incur pre-tax charges of approximately $25 million and achieve annualized savings of $15 million.
The company reported a gross profit of $145.0 million for the quarter, up from $139.6 million in the previous year, with a gross profit margin of 30.1%.
Kennametal's cash and cash equivalents were $121.2 million as of December 31, 2024, with total shareholders' equity at $1,220.0 million and total debt at $597.8 million.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kennametal Inc. quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.