Kennametal Downgrades Earnings Outlook for Fiscal 2016
PITTSBURGH – Kennametal Inc. says it “expects as much as a 30% to 60% decrease” in its outlook for fiscal 2016 compared to the $1.50 to $1.70 a share the manufacturer previously estimated.
The company attributed the poor outlook to “further declines in its end markets as evidenced by continued declines in industrial production indices since prior guidance was issued in early November, particularly China automotive and U.S. and China coal mining, as well as further reductions in oil and gas activity.”
Said the company’s president and CEO, Don Nolan, in a statement, “Our served end markets are experiencing significant volatility and we are being challenged by the current global macroeconomic environment. … Despite weak market conditions, we continue to make meaningful progress on critical initiatives to strengthen our foundation and ultimately grow our business, which we will outline in our meeting with investors tomorrow. When market conditions improve, we are confident that Kennametal will deliver substantially improved results.”
Kennametal provides materials science, tooling and wear-resistant solutions. The company reported fiscal 2015 revenues of $2.5 billion. It employs 13,000 worldwide.
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