Kennametal to Slash 1,200 Jobs, Cuts Guidance

Latrobe, Pa. -- Kennametal (KMT Quote) plans to eliminate 1,200 jobs. The company also reduced its profit guidance for its fiscal second quarter.

The Latrobe, Pa.-based manufacturer of metal-cutting tools and highway construction equipment says it will cut 800 jobs in the next three to six months. Another 400 jobs will be eliminated in the next six to nine months.

Total pretax savings are expected to be $100 million, according to the company.

Kennametal also reduced its profit estimate for the quarter ended Dec. 31 to about 34 cents per share. The company previously forecast income between 51 cents and 56 cents per share.

The estimates exclude restructuring charges of about 14 cents per share.

Analysts polled by Thomson Reuters expect income of 48 cents per share. Analyst estimates typically exclude one-time items.

Kennametal also says that because of lower sales volumes due the downturn in global markets, the company expects an organic sales decline of about 10% for its fiscal second quarter.