Pittsburgh, PA-based industrial tooling and industrial materials supplier Kennametal reported its 2018 full-year and fourth quarter financial results on Tuesday, showing a strong fiscal 80th year for the company.
Kennametal had total 2018 sales of $2.37 billion, up 15 percent year-over-year (YoY) with organic sales up approximately 12 percent. Total profit of $205.1 million dwarfed the $52 million it had in 2017; operating profit of $308 million likewise compared with $113 million in 2017; and operating margin of 13.0 percent compared with 5.5 percent in 2017.
Kennametal said its recent restructuring programs delivered 2018 YoY savings of approximately $55 million.
Fourth Quarter
In Q4 2018, Kennametal had sales of $646 million, up 14 percent YoY and up 6.3 percent from Q3, with organic sales up approximately 10 percent YoY. Total profit of $70.2 million compared with $25.6 million from a year earlier; operating profit of $98 million compared with $40 million from a year earlier; and operating margin of 15.1 percent compared with 7.1 percent from a year earlier.
By business segment in Q4:
- Industrial sales of $349 million increased 16 percent YoY, with organic sales up approximately 11 percent. Operating profit of $56 million compared with $21 million from a year earlier, while operating margin of 16.1 percent compared with 6.9 percent from a year earlier.
- Infrastructure sales of $244 million increased 12 percent YoY, with organic sales up approximately 9 percent. Operating profit of $540 million compared with $18 million from a year earlier, while operating margin of 16.6 percent compared with 8.1 percent from a year earlier.
- Widia sales of $53 million increased 12 percent YoY, with organic sales up approximately 9 percent. Operating profit of $2 million compared to a $2 million loss from a year earlier, while operating margin of 3.5 percent compared with an operating margin loss of 3.8 percent from a year earlier.
"I am encouraged by the strong results of the quarter, and the progress we have made on our growth and margin expansion initiatives this year," said Chris Rossi, Kennametal president and CEO. "Every business segment reported significant growth and profitability improvement, and we continue to see strong end market demand."
Kennametal said "Although the trade environment is evolving, the company does not currently expect tariffs to have a material effect on its sales or cost structure," and that it expects 2019 full year organic sales growth to be in the range of 5 to 8 percent.
