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COVID-19: How Kennametal is responding

Kennametal Inc. today reported fiscal 2005 third-quarter adjusted EPS of $0.92 compared with prior year reported EPS of $0.66 and original guidance of $0.80 to $0.85. Third quarter reported EPS of $0.80 includes $0.12 of charges related to the Full Service Supply (FSS) divestiture.

For the first nine months of fiscal 2005, adjusted EPS were $2.26 compared with prior year adjusted EPS of $1.34. Reported EPS for the current period were $2.15 and include special items totaling $0.11 related to the FSS divestiture. Prior year period reported EPS were $1.20 and included special items totaling $0.14.

Kennametal Chairman, President and Chief Executive Officer, Markos I. Tambakeras, said, "Building on the momentum of the first half, we sustained a robust rate of growth on top of the 14 percent growth posted in the third quarter of fiscal 2004. As a result, we delivered the highest quarterly sales and earnings in Kennametal's history, while continuing to generate strong cash flow. Consistent execution of our strategies through the Kennametal Value Business System supported growth in every geography and nearly every market, despite our modest automotive exposure--representing only 18 percent of sales, less than half of which is in North America. We also continued to proactively improve the growth and profitability profile of our portfolio with the Extrude Hone acquisition and the announced divestiture of the Full Service Supply business."

  Highlights of the Fiscal 2005 Third Quarter

   -- Sales of $597 million up 14 percent versus the same quarter last year,
      including 12 percent organic sales growth, 3 percent benefit from
      foreign currency exchange and 2 percent from acquisitions offset by 3
      percent from fewer workdays.
   -- Reported net income was $31 million versus $24 million, as improved
      sales volume was leveraged against a more productive operating
      structure offset by charges related to the FSS divestiture.
   -- Net cash flow from operations was $66 million versus $54 million last
      year.  Free operating cash flow was $45 million versus the prior year
      level of $41 million due primarily to increased operating leverage.
   -- Debt to capital decreased to 32 percent versus 37 percent at the end
      of the prior year quarter, including the impact of the Extrude Hone
      acquisition.
   -- Adjusted Return on Invested Capital improved 290 basis points to 9.1
      percent versus 6.2 percent in the prior year.
   -- Completed the acquisition of Extrude Hone Corporation for
      approximately $133.6 million, net of acquired cash and direct
      acquisition costs.

  Highlights of First Nine Months of Fiscal 2005

   -- Sales of $1.7 billion up 18 percent on 14 percent organic sales
      growth, 3 percent benefit from foreign currency exchange and 2 percent
      from acquisitions offset by 1 percent from fewer workdays.
   -- Reported net income was $82 million versus $44 million in the same
      period last year, reflecting the benefits of increased operating
      leverage, partially offset by charges related to the FSS divestiture.
   -- Net cash flow from operations was $150 million versus $109 million
      last year.  Free operating cash flow totaled $96 million for the nine-
      month period versus $76 million in last year's comparable period, due
      to growth in cash from operations offset by increased capital
      spending.

  Divestiture

As previously announced, Kennametal Inc. has signed a definitive agreement to sell its FSS business unit. During the quarter ended March 31, 2005, the Company recognized an impairment charge related to FSS goodwill of $5 million and recorded a loss on assets held for sale of $1 million. The impact on EPS was $0.12 during the quarter and $0.11 for the nine-month period.

This transaction is expected to close during Kennametal's Fiscal 2005 fourth quarter.

Outlook

Tambakeras said, "We are pleased to be on pace for a record year of sales and earnings, and remain steadfastly focused on delivering superior shareowner value."

Organic sales for the fourth quarter of fiscal 2005 are expected to grow 9 to 11 percent, despite significantly tougher comparisons. Reported EPS is expected to be $0.90 to $0.95. The effective tax rate for the fourth quarter is expected to be approximately 36 percent (this is an increase versus prior expectations of 32 percent). The full year rate is expected to be approximately 33 percent. As stated previously, the execution of our business strategy, as well as the impact of tax planning, will result in fluctuations of the tax rate from quarter to quarter.

Kennametal anticipates net cash flow provided by operating activities of approximately $190 to $215 million, or between 8 and 9 percent of sales, in fiscal 2005. Purchases of property, plant and equipment, net of proceeds from disposals of property, plant and equipment are still expected to be approximately $75 to $80 million. Adjusting net cash flow provided by operating activities for the above items, Kennametal expects to generate between $115 and $130 million of free operating cash flow for fiscal 2005.

Kennametal advises shareowners to note monthly order trends, for which the company makes a disclosure ten business days after the conclusion of each month. This information is available on the Investor Relations section of Kennametal's corporate web site at http://www.kennametal.com/ .

Dividend Declared

Kennametal also announced its Board of Directors declared a quarterly cash dividend of $0.17 cents per share, payable May 24, 2005, to shareowners of record as of the close of business on May 9, 2005.

Third quarter results will be discussed in a live Internet broadcast at 10:00 a.m. (Eastern) today. Access the live or archived conference by visiting the Investor Relations section of Kennametal's corporate web site at http://www.kennametal.com/ .

This release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these forward-looking statements by the fact they use words such as "should," "anticipate," "estimate," "approximate," "expect," "may," "will," "project," "intend," "plan," "believe," and others words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements are likely to relate to, among other things, our goals, plans and projections regarding our financial position, results of operations, market position and product development, which are based on current expectations that involve inherent risks and uncertainties, including factors that could delay, divert or change any of them in the next several years. Although it is not possible to predict or identify all factors, they may include the following: global economic conditions; future terrorist attacks; epidemics; risks associated with integrating and divesting businesses and achieving the expected savings and synergies; demands on management resources; risks associated with international markets such as currency exchange rates, and social and political environments; competition; labor relations; commodity prices; demand for and market acceptance of new and existing products; and risks associated with the implementation of restructuring plans and environmental remediation matters. We can give no assurance that any goal or plan set forth in forward- looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

Kennametal Inc. is the world's premier supplier of tooling, engineered components and advanced materials consumed in production processes. The company improves customers' competitiveness by providing superior economic returns through the delivery of application knowledge and advanced technology to master the toughest of materials application demands. Companies producing everything from airframes to coal, from medical implants to oil wells and from turbochargers to motorcycle parts recognize Kennametal for extraordinary contributions to their value chains. Customers buy over $2.2 billion annually of Kennametal products and services -- delivered by our 14,000 talented employees in over 60 countries -- with almost 50 percent of these revenues coming from outside the United States. Visit us at http://www.kennametal.com/ . KMT-E

                           FINANCIAL HIGHLIGHTS

  Consolidated Statements of Income (Unaudited)

  (in thousands, except       Quarter Ended         Nine Months Ended
  per share amounts)             March 31,               March 31,
                             2005       2004         2005        2004

  Sales                    $597,355   $524,230   $1,685,009  $1,429,583
    Cost of goods sold (1)  386,094    348,376    1,118,939     961,990
  Gross profit              211,261    175,854      566,070     467,593
    Operating expense (2)   147,968    132,218      418,430     378,180
    Restructuring and
     asset impairment
     charges (3)              4,707          -        4,707       3,670
    Amortization of
     intangibles                723        614        1,894       1,570
  Operating income           57,863     43,022      141,039      84,173
    Interest expense          6,803      6,332       19,380      19,479
    Other expense
     (income), net (4)           28        508       (2,786)     (2,010)
  Income before provision
   for income taxes and
   minority interest         51,032     36,182      124,445      66,704
  Provision for income
   taxes                     18,933     11,579       39,540      21,345
  Minority interest           1,449        533        3,354       1,632
  Net income                $30,650    $24,070      $81,551     $43,727
  Basic earnings per share    $0.83      $0.67        $2.22       $1.23
  Diluted earnings per
   share                      $0.80      $0.66        $2.15       $1.20
  Dividends per share         $0.17      $0.17        $0.51       $0.51
  Basic weighted average
   shares outstanding        37,093     35,828       36,736      35,589
  Diluted weighted average
   shares outstanding        38,253     36,662       37,935      36,307

  1) For the nine months ended March 31, 2004, these amounts include charges
     of $0.1 million for integration activities related to the Widia
     acquisition, $2.9 million related to restructuring programs, and $0.8
     million for a pension curtailment.

  2) For the quarter and nine months ended March 31, 2005, these amounts
     include a loss on assets held for sale of $1.5 million.  For the nine
     months ended March 31, 2004, these amounts include charges of $1.4
     million for integration activities related to the Widia acquisition,
     $1.8 million related to a reserve for a note receivable from a
     divestiture of a business by Kennametal in 2002, and $0.5 million
     related to a pension curtailment.

  3) For the quarter and nine months ended March 31, 2005, these amounts
     include $4.7 million related to a FSS goodwill impairment charge.  For
     the nine months ended March 31, 2004, these amounts include $3.7
     million related to restructuring programs.

  4) For the nine months ended March 31, 2004, these amounts include income
     of $4.4 million related to a gain on the sale of Toshiba Tungaloy
     investment and a charge of $0.2 million on a reserve for a note
     receivable from a divestiture of a business by Kennametal in 2002.


In addition to reported results under generally accepted accounting principles in the United States of America (GAAP), the following financial highlight tables also include, where appropriate, a reconciliation of results excluding special items, free operating cash flow, debt to capital, and adjusted return on invested capital (which are non-GAAP measures), to the most directly comparable GAAP measures. Management believes that the investor should have available the same information that management uses to assess operating performance, determine compensation, and assess the capital structure of the Company. These non-GAAP measures should not be considered in isolation or as a substitute for the most comparable GAAP measures. Non-GAAP financial measures utilized by the Company may not be comparable to non-GAAP financial measures used by other companies.

  RECONCILIATION TO GAAP - QUARTER ENDED MARCH 31, 2005 (Unaudited)

                                                    Other           Diluted
                               Operating Operating (Income)/  Net   Earnings
                   Gross Profit  Expense  Income   Expense  Income Per Share

  2005 Reported
   Results           $211,261   $147,968  $57,863      $28  $30,650   $0.80
    FSS goodwill
     impairment
     charge                 -          -    4,707        -    3,306    0.09
    Loss on assets
     held for sale          -     (1,546)   1,546        -    1,086    0.03
  2005 Results,
   excluding special
   items             $211,261   $146,422  $64,116      $28  $35,042   $0.92

Reported EPS for the quarter ended March 31, 2005 of $0.80 is up 21 percent from reported EPS of $0.66 for the quarter ended March 31, 2004. Adjusted EPS for the quarter ended March 31, 2005 of $0.92 is up 39 percent from reported EPS of $0.66 for the quarter ended March 31, 2004.

  RECONCILIATION TO GAAP - NINE MONTHS ENDED MARCH 31, 2005 (Unaudited)

                                                    Other           Diluted
                               Operating Operating (Income)/  Net   Earnings
                   Gross Profit  Expense  Income   Expense  Income Per Share

  2005 Reported
   Results           $566,070   $418,430 $141,039  $(2,786) $81,551   $2.15
    FSS goodwill
     impairment
     charge                 -          -    4,707        -    3,277    0.08
    Loss on assets
     held for sale          -     (1,546)   1,546        -    1,076    0.03
  2005 Results,
   excluding special
   items             $566,070   $416,884 $147,292  $(2,786) $85,904   $2.26

  For the quarter ended March 31, 2004, there were no special items.



  RECONCILIATION TO GAAP - NINE MONTHS ENDED MARCH 31, 2004 (Unaudited)

                                                    Other           Diluted
                               Operating Operating (Income)/  Net   Earnings
                   Gross Profit  Expense  Income   Expense  Income Per Share

  2004 Reported
   Results             $467,593 $378,180  $84,173  $(2,010) $43,727   $1.20
    MSSG restructuring    2,850        -    5,023        -    3,416    0.10
    AMSG restructuring        -        -    1,497        -    1,018    0.03
    Widia integration
     costs - MSSG            63   (1,448)   1,511        -    1,027    0.03
    Widia integration
     costs - AMSG            48        -       48        -       33       -
    Pension curtailment     779     (520)   1,299        -      883    0.02
    Gain on Toshiba
     investment               -        -        -    4,397   (2,990)  (0.08)
    Note receivable           -   (1,817)   1,817     (183)   1,360    0.04
  2004 Results,
   excluding special
   items               $471,333 $374,395  $95,368   $2,204  $48,474   $1.34



  SEGMENT DATA (Unaudited):

                             Quarter Ended           Nine Months Ended
                                March 31,                March 31,
                            2005        2004         2005         2004
  Outside Sales:
  Metalworking Solutions
   and Services Group     $357,197    $317,506   $1,009,297     $872,128
  Advanced Materials
   Solutions Group         135,460     111,464      375,673      299,846
  J&L Industrial Supply     67,054      60,074      189,809      158,554
  Full Service Supply       37,644      35,186      110,230       99,055
  Total Outside Sales     $597,355    $524,230   $1,685,009   $1,429,583

  Sales By Geographic
   Region:
  Within the United
   States                 $323,484    $289,506     $926,791     $791,151
  International            273,871     234,724      758,218      638,432
  Total Sales by
   Geographic Region      $597,355    $524,230   $1,685,009   $1,429,583

  Operating Income (Loss),
   as reported:
  Metalworking Solutions
   and Services Group      $53,555     $36,751     $135,150      $82,937
  Advanced Materials
   Solutions Group          22,211      15,146       50,613       36,375
  J&L Industrial Supply      7,915       6,419       19,502       13,410
  Full Service Supply       (5,036)        376       (4,370)         (64)
  Corporate and
   eliminations (1)        (20,782)    (15,670)     (59,856)     (48,485)
  Total Operating Income,
   as reported             $57,863     $43,022     $141,039      $84,173

  Operating Income (Loss),
   excluding special items:
  Metalworking Solutions
   and Services Group      $53,555     $36,751     $135,150      $89,471
  Advanced Materials
   Solutions Group          22,211      15,146       50,613       37,920
  J&L Industrial Supply      7,915       6,419       19,502       13,410
  Full Service Supply        1,217         376        1,883          (64)
  Corporate and
   eliminations (1)        (20,782)    (15,670)     (59,856)     (45,369)
  Total Operating Income,
   excluding special items $64,116     $43,022     $147,292      $95,368

  (1) Includes corporate functional shared services and intercompany
      eliminations.



  OPERATING INCOME (LOSS) RECONCILIATION (Unaudited):

                                     QUARTER ENDED MARCH 31,
                       MSSG    AMSG     J&L     FSS   Corp & Elim   Total
  2005 Reported
   Operating Income
   (Loss)             $53,555 $22,211  $7,915 $(5,036) $(20,782)   $57,863
    FSS goodwill
     impairment charge      -       -       -   4,707         -      4,707
    Loss on assets
     held for sale          -       -       -   1,546         -      1,546
  2005 Operating Income
   (Loss), excluding
   special items      $53,555 $22,211  $7,915  $1,217  $(20,782)   $64,116


                                   NINE MONTHS ENDED MARCH 31,
                       MSSG    AMSG     J&L     FSS   Corp & Elim   Total
  2005 Reported
   Operating Income
   (Loss)            $135,150 $50,613 $19,502 $(4,370) $(59,856)  $141,039
    FSS goodwill
     impairment
     charge                 -       -       -   4,707         -      4,707
    Loss on assets
     held for sale          -       -       -   1,546         -      1,546
  2005 Operating Income
   (Loss), excluding
   special items     $135,150 $50,613 $19,502  $1,883  $(59,856)  $147,292


  For the quarter ended March 31, 2004, there were no special items.

                                   NINE MONTHS ENDED MARCH 31,
                       MSSG    AMSG     J&L      FSS  Corp & Elim   Total
  2004 Reported
   Operating Income
   (Loss)             $82,937 $36,375 $13,410    $(64) $(48,485)   $84,173
    Restructuring       5,023   1,497       -       -         -      6,520
    Widia integration
     costs              1,511      48       -       -         -      1,559
    Pension curtailment     -       -       -       -     1,299      1,299
    Note receivable         -       -       -       -     1,817      1,817
  2004 Operating Income
   (Loss), excluding
   special items      $89,471 $37,920 $13,410    $(64) $(45,369)   $95,368



  RECONCILIATION TO FREE OPERATING CASH FLOW INFORMATION (Unaudited):

                              Quarter Ended          Nine Months Ended
                                 March 31,                March 31,
                             2005        2004         2005        2004

  Net income                $30,650     $24,070      $81,551     $43,727
  Other non-cash items       12,332       4,238       16,565      15,457
  Depreciation and
   amortization              16,931      16,913       48,540      48,753
  Change in inventory        (8,751)     (1,969)     (21,481)     13,468
  Change in accounts
   receivable               (29,766)    (26,610)     (14,774)     (3,213)
  Change in accounts
   payable                   12,340      18,260          991       9,080
  Change in other assets
   and liabilities           32,569      19,222       38,339     (17,805)
  Net cash flow provided
   by operating activities   66,305      54,124      149,731     109,467

  Purchase of property,
   plant and equipment      (21,523)    (14,207)     (57,292)    (36,060)
  Proceeds from disposals
   of property, plant and
   equipment                    579         610        3,912       2,998
  Free operating cash flow  $45,361     $40,527      $96,351     $76,405



  CONDENSED BALANCE SHEETS (Unaudited):

                   03/31/05    12/31/04    09/30/04    06/30/04    03/31/04
  ASSETS
  Cash and
   equivalents      $34,792     $32,168     $28,688     $25,940     $27,528
  Trade
   receivables,
   net of
   allowance        382,188     367,940     369,008     364,725     357,795
  Receivables
   securitized     (120,749)   (115,253)   (115,309)   (117,480)   (108,916)
  Accounts
   receivable,
   net              261,439     252,687     253,699     247,245     248,879
  Inventories       408,713     421,183     404,478     388,077     387,202
  Deferred income
   taxes             98,063      99,731      96,144      95,240      88,480
  Current assets
   held for sale     50,469           -           -           -           -
  Other current
   assets            32,353      39,605      37,178      40,443      38,803
    Total current
     assets         885,829     845,374     820,187     796,945     790,892
  Property, plant
   and equipment,
   net              512,806     506,253     487,616     484,475     481,793
  Goodwill and
   intangible
   assets, net      661,908     543,062     546,487     542,014     554,614
  Assets held for
   sale               2,715           -           -           -           -
  Other assets      135,873     133,451     115,733     115,229      57,743
    Total        $2,199,131  $2,028,140  $1,970,023  $1,938,663  $1,885,042

  LIABILITIES
  Short-term debt,
   including notes
   payable          $56,225     $28,888    $116,446    $126,807      $8,193
  Accounts
   payable          142,268     142,465     146,543     148,216     132,246
  Current
   liabilities
   held for sale     14,437           -           -           -           -
  Accrued
   liabilities      245,534     226,568     217,636     211,504     200,304
    Total current
     liabilities    458,464     397,921     480,625     486,527     340,743
  Long-term debt    428,943     376,268     318,989     313,400     486,119
  Deferred income
   taxes             91,088      56,340      65,973      67,426      39,132
  Other
   liabilities      179,786     174,855     162,627     167,926     192,546
    Total
     liabilities  1,158,281   1,005,384   1,028,214   1,035,279   1,058,540

  MINORITY
   INTEREST          19,664      19,249      17,377      16,232      16,598

  SHAREOWNERS'
   EQUITY         1,021,186   1,003,507     924,432     887,152     809,904

    Total        $2,199,131  $2,028,140  $1,970,023  $1,938,663  $1,885,042



  Debt to Capital Reconciliation (Unaudited):

                                                     March 31,
                                               2005           2004

  Total debt                                  $485,168       $494,312
  Total shareowners' equity                  1,021,186        809,904

  Debt to equity, GAAP                           47.5%          61.0%

  Total debt                                  $485,168       $494,312
  Minority interest                             19,664         16,598
  Total shareowners' equity                  1,021,186        809,904

  Total capital                             $1,526,018     $1,320,814

  Debt to Capital                                31.8%          37.4%



  RETURN ON INVESTED CAPITAL (Unaudited):

  For the Period Ended March 31, 2005

  Invested
   Capital  3/31/2005 12/31/2004  9/30/2004  6/30/2004  3/31/2004   Average

   Debt      $485,168   $405,156   $435,435   $440,207   $494,312   $452,056
   Accounts
    receivable
    securi-
    tized     120,749    115,253    115,309    117,480    108,916    115,541
   Minority
    interest   19,664     19,249     17,377     16,232     16,598     17,824
   Shareowners'
    equity  1,021,186  1,003,507    924,432    887,152    809,904    929,236
   Total   $1,646,767 $1,543,165 $1,492,553 $1,461,071 $1,429,730 $1,514,657


                                      Quarter Ended
  Interest Expense 3/31/2005 12/31/2004 9/30/2004 6/30/2004   Total
    Interest
     expense          $6,803    $6,121    $6,456    $6,405   $25,785
    Securitization
     interest            868       757       580       443     2,648
    Total interest
     expense          $7,671    $6,878    $7,036    $6,848   $28,433
    Income tax
     benefit                                                   9,099
    Total Interest
     Expense, net
     of tax                                                  $19,334


                                      Quarter Ended
  Total Income     3/31/2005 12/31/2004 9/30/2004 6/30/2004   Total
    Net Income, as
     reported        $30,650   $28,181   $22,720   $29,852  $111,403

    Restructuring
     and asset
     impairment
     charges           3,306         -         -         -     3,306
    Loss on assets
     held for sale     1,086         -         -         -     1,086
    Minority
     interest
     expense           1,449       928       977       (36)    3,318
    Total Income,
     excluding
     special items   $36,491   $29,109   $23,697   $29,816  $119,113

    Total Income, excluding special
     items                                                  $119,113
    Total Interest Expense, net of tax                        19,334
                                                            $138,447
    Average invested capital                              $1,514,657
  Adjusted Return on Invested Capital                           9.1%

  Return on Invested Capital calculated utilizing
   Net Income, as reported is as follows:
    Net Income, as reported                                 $111,403
    Total Interest Expense, net of tax                        19,334
                                                            $130,737
    Average invested capital                              $1,514,657
  Return on Invested Capital                                    8.6%



  RETURN ON INVESTED CAPITAL (Unaudited):

  For the Period Ended March 31, 2004

  Invested
   Capital  3/31/2004 12/31/2003  9/30/2003  6/30/2003  3/31/2003   Average

   Debt      $494,312   $481,327   $520,138   $525,687   $580,135   $520,320
   Accounts
    receivable
    securi-
    tized     108,916    101,422     95,318     99,316     93,614     99,717
   Minority
    interest   16,598     16,286     16,089     18,880     18,070     17,185
   Shareowners'
    equity    809,904    791,442    746,562    721,577    756,511    765,199
   Total   $1,429,730 $1,390,477 $1,378,107 $1,365,460 $1,448,330 $1,402,421


                                      Quarter Ended
  Interest Expense 3/31/2004 12/31/2003 9/30/2003 6/30/2003   Total
    Interest
     expense          $6,332    $6,547    $6,600    $9,108   $28,587
    Securitization
     interest            356       483       397       413     1,649
    Total interest
     expense          $6,688    $7,030    $6,997    $9,521   $30,236
    Income tax
     benefit                                                   9,676
    Total interest
     expense, net
     of tax                                                  $20,560


                                      Quarter Ended
  Total Income     3/31/2004 12/31/2003 9/30/2003 6/30/2003   Total
    Net income,
     as reported     $24,070   $10,892    $8,764   $(4,868)  $38,858

    Minority interest
     expense             533       404       695        74     1,706
    MSSG restructuring     -     1,109     2,307     2,194     5,610
    AMSG restructuring     -     1,018         -       857     1,875
    Corporate
     restructuring         -         -         -       (69)      (69)
    J&L restructuring      -         -         -       (45)      (45)
    Widia integration
     costs - MSSG          -         -     1,027     1,758     2,785
    Widia integration
     costs - AMSG          -         -        33       818       851
    AMSG electronics
     impairment            -         -         -    15,269    15,269
    Pension curtailment    -       883         -         -       883
    Gain on Toshiba
     investment            -    (2,990)        -         -    (2,990)
    Note receivable        -     1,360         -         -     1,360
    Total Income,
     excluding special
     items           $24,603   $12,676   $12,826   $15,988   $66,093

    Total Income, excluding special
     items                                                   $66,093
    Total Interest Expense, net of tax                        20,560
                                                             $86,653
    Average invested capital                              $1,402,421
  Adjusted Return on Invested Capital                           6.2%

  Return on Invested Capital calculated utilizing
   Net Income, as reported is as follows:
    Net Income, as reported                                  $38,858
    Total Interest Expense, net of tax                        20,560
                                                             $59,418
    Average invested capital                              $1,402,421
  Return on Invested Capital                                    4.2%

SOURCE: Kennametal Inc.

CONTACT: Investor Relations, Beth A. Riley, or Media Relations, Joy
Chandler of Kennametal Inc., +1-724-539-6141