NEW YORK Tool
and drill manufacturer Kennametal Inc. has forecast an
improvement in industrial production after seeing earnings and
sales fall in its fiscal year.
The Latrobe, Pa.-based
company posted net income of nearly $203.3 million for the 12
months ended June 30, down 33.8 percent from more than $307.2
million the previous year, on sales that fell 5.4 percent to
The decline in net
sales was "driven by an 8-percent organic decline, a 2-percent
unfavorable effect from currency exchange and a 1-percent
decline due to fewer business days," Kennametal said.
"Operating income decreased primarily due to lower sales
volume, lower absorption of manufacturing costs related to
reduced sales volume and an inventory reduction initiative, as
well as unfavorable currency exchange."
The company forecast
organic sales growth of between 5 and 7 percent and total sales
growth of 4 to 6 percent in fiscal 2014.
outlook reflects expectations of continued macro-economic
improvement, with worldwide industrial production building
momentum. While manufacturing and industrial sectors are
projected to expand over the next 12 months, underground coal
mining will likely remain weak globally as well as some
near-term project delays in the energy markets," the company