Kennametal Posts 3Q Loss Of $138M

LATROBE, Pa. (AP) — Kennametal Inc., which makes metal-cutting tools and highway construction equipment, said Friday it lost $138 million in its fiscal third quarter as the global economic slowdown hurt demand for its products and it absorbed hefty one-time charges.

The company expects sales will be down more than 40 percent for this quarter versus a year ago, and said its operating results will be lower than in the third quarter.

Kennametal's loss amounted to $1.90 per share for the three months ended March 31. That compares with a profit of $23 million, or 30 cents per share, a year ago.

The results include charges of $1.40 per share for the reduced value of goodwill and intangible assets and 51 cents per share for restructuring.

Excluding those charges, Kennametal earned a penny per share in the latest quarter. That matched the average estimate of analysts surveyed by Thomson Reuters. Those estimates generally exclude one-time items.

Revenue dropped 36 percent to $441 million from $690 million a year ago. Analysts expected higher revenue of $470.4 million.