, a provider of mining and highway construction equipment, said its third-quarter earnings rose 7.4% on increased revenue and decreased costs.
The Latrobe, Pa.-based company earned $32.9 million, or 82 cents a share, in the quarter, compared with $30.7 million, or 80 cents a share, a year ago. Adjusted for charges associated with divestitures, the company earned $1.17 a share, in the quarter, compared with 92 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $1.10 a share in the most recent quarter.
Third-quarter revenue rose 5.7% to $631.1 million on account of 12% growth in organic sales as against analysts' expectation of $643 million.
Kennametal expects to earn $1.17 a share to $1.27 a share for the fourth quarter and $3.85 a share to $3.95 a share for the full year. Analysts estimate stands at $1.22 a share for the fourth quarter and $3.84 a share for the full year.
The company expects an organic revenue growth of 7% to 10% for the fourth quarter and 9% to 10% for the full year.
"Despite difficult comparables, the global manufacturing forecast is consistent with our belief that the industrial sector will continue to show strength," the company said. "Our proven business model enables us to effectively deliver volume growth and price realization through disciplined processes and we expect to continue to outperform the market."
Operating profit increased 6.6% to $61.7 million and operating profit margin improved 10 basis points to 9.8%.
Shares dropped $1.43 to $61.20.
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