Tool growth in the first half of 2011 Kennametal optimistic about the market

Carlos Cardoso, chief executive of Kennametal Inc., a global industrial tool maker, recently predicted at the company’s shareholder meeting that in the first half of 2011, the company’s business status will be further improved, but industry activities will also be improved. Unable to reach the highest level in 2008. He believes that "the growth of developing markets - such as China and India - is leading the way, and the North American market is also continuing to recover, while the European market may see moderate growth in the near future."

The metal cutting tools produced by Kennametal are used to manufacture parts for the aviation, automotive, petroleum, mining and other industries. The carbide products produced by its technology-leading materials division are used in mining, highway construction, and other applications requiring the use of abrasion and resistance. Corrosion parts industry. Cardoso said that the company is currently in a very favorable market position and will benefit from the economic recovery. At present, industrial production in the United States is on the rise and global manufacturing activities are also growing. Industrial end markets (such as transportation, general engineering, energy, etc.) are continuing to strengthen, and customers are re-inventing their products after the first two years of “stock reduction.” Supplementary tool product inventory.

However, Cardoso believes that at least in the next 2-3 years, the company's business is still difficult to achieve the high level of the pre-recession 2007 and 2008.

Cardoso said that Kenner’s “reduction of organization and redundancy” during the recession is paying off. These actions include the divestment of some non-core businesses and some businesses with low profitability and low growth potential.

In the institutional restructuring that began in April 2008, the company closed 20 manufacturing plants and reduced its number of employees from approximately 14,000 in 2008 to approximately 11,000 in June of this year (including US 4,800 people). Cardoso said that once the reorganization plan is completed, the company will cut the fixed cost of $160 million. By streamlining the organization, Kennametal’s profitability will further increase. Although its sales have been reduced to less than US$2 billion, the company is still able to use its manufacturing capabilities around the world without the need for large-scale capital investment. , increase sales to 3 billion U.S. dollars.

In fiscal year 2010, which ended on June 30th, Kanken made a profit of US$46.4 million (57 cents per share), while in fiscal 2009 it lost US$119.7 million (US$1.64 per share). Sales for fiscal year 2010 were 1.88 billion U.S. dollars, which was approximately 100 million U.S. dollars less than the 1.99 billion U.S. dollars for the fiscal year 2009, and the fiscal year 2008 sales were 2.58 billion U.S. dollars.

Kenner’s net profit was $34.9 million (42 cents per share) in the fiscal year ended September 30, 2011, compared with a loss of $9.18 million in the same period of the previous year. : Sales reached US$529.1 million, an increase of over 29% compared to sales of the same period last year (US$409.3 million). The company’s sales in all regions of the world have increased, with the Asian market growing by 40% and the North American and South American markets increasing by 33%.

Kenneth has raised its forecast for sales growth for the 2011 fiscal year from 14%-17% previously forecast to 19%-21%.