Kennametal (KMT) - Get Report shares were down 22% in premarket trading after the industrial technology company cut its outlook and said first-quarter revenue will fall more than expected, citing "more challenging market conditions."
The Latrobe, Penn.-based company said it expects to report revenue of $518 million in the first quarter, down 12% from $587 million a year ago, "reflecting further slowing of market conditions primarily in the general engineering, energy and transportation end markets."
The estimate also is below the consensus of $546.7 million, according to FactSet.
For fiscal 2020, the company cut its adjusted earnings guidance range to $1.70 to $2.10 a share from $2.80 to $3.20, compared with the FactSet consensus of $2.81.
It also revised its organic sales growth outlook to negative 9% to negative 5%, from negative 2% to positive 2%.
"Our first-quarter results are well below our expectations as market conditions deteriorated more significantly than we anticipated across all regions, and primarily in the general engineering, energy and transportation end markets," CEO Christopher Rossi said in a release.
The company will release its latest earnings after market close on Nov. 4.
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