Kennametal Inc.'s (KMT) second-quarter net income attributable to the company slipped to $5.97 million or $0.07 per share from $15.66 million or $0.21 per share a year ago.
Absent restructuring and related charges, adjusted earnings for the current quarter was $11.17 million or $0.14 per share compared with $25.44 million or $0.35 per share in the prior year quarter. On average, 13 analysts polled by Thomson Reuters expected earnings per share of $0.06 for the quarter. Analysts' estimate typically excludes one-time items.
Sales for the three months ended December 31, 2009 declined to $442.86 million from $546.06 million in the previous year. Nine analysts estimated revenues of $448.35 million for the quarter.
For the third quarter of fiscal 2010, Kennametal expects organic sales to be 5% to 10% higher than for the same quarter of the previous fiscal year and expects sequential earnings per share improvement for the next 2 quarters.
Excluding restructuring and divestiture related charges, Kennametal is increasing its fiscal 2010 earnings per share view to the range of $0.65 - $0.75 from its prior range of $0.50 - $0.70, on sales that are expected to be 8% to 10% lower year-over-year on an organic basis. This higher earnings per share range represents a 17% increase in the midpoint. Eleven analysts estimate earnings per share of $0.66 for fiscal 2010.
In addition, the board declared a regular quarterly cash dividend of $0.12 per share, payable February 24, 2010 to shareowners of record as of the close of business on February 9, 2010.
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