logo
  

Kennametal Accelerates Structural Cost Reduction Plans - Quick Facts

Kennametal Inc. (KMT) announced Tuesday that it is continuing cost-control actions to mitigate the lower market conditions associated with COVID-19.

The compensation of salaried employees will temporarily be reduced by 10 to 20 percent based on job level through the first half of fiscal 2021. This action is expected to save approximately $10 million to $15 million per quarter.

The Company will continue temporary shutdowns and reduced production schedules to align manufacturing capacity to anticipated customer demand. Its Board of Directors cash compensation will be reduced by 20 percent through the first half of fiscal 2021.

The company also provided an update on its ongoing Simplification/Modernization initiative. It is accelerating its structural cost reduction plans with a restructuring of approximately 10 percent of salaried employees globally, which is expected to be substantially complete in the first half of fiscal 2021.

The Company is also increasing the estimated annualized benefits of its fiscal 2021 Restructuring Actions to $65 million to $75 million from $25 million to $30 million and the pre-tax charges to $90 million to $100 million from $55 million to $60 million.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Delta Air Lines said it sees weather-related flight cancelations as AT&T and Verizon readies for 5G roll out in and around the vicinity of major U.S. airports. Most of the other airlines also confirmed the same as the implementation of the new C-Band 5G service is expected to interfere with the working of onboard aircraft instruments. Financial services firm Morgan Stanley (MS) reported Wednesday a profit for the fourth quarter that increased 10 percent from last year, reflecting 7 percent revenue growth amidst strength in Wealth Management and Investment Management business segments. Bank of America Corp. (BAC) reported Thursday that net income applicable to common shareholders for the fourth quarter grew 30 percent to $6.77 billion from last year's $5.21 billion, with earnings per share increasing to $0.82 from $0.59 in the prior year, reflecting strong operating leverage as revenues...
RELATED NEWS
Follow RTT