Kennametal Reports Record Results for Fiscal Year 2005 and Fourth Quarter

US-based Kennametal Inc. has reported fiscal 2005 fourth quarter earnings per diluted share (EPS) at a record level of $0.98, up 21% from the prior year’s fourth quarter and above the original guidance of $0.90–0.95. There were no special items in either of the quarters compared.

For fiscal 2005, adjusted EPS was $3.25, also a record, and compares with a prior-year adjusted EPS of $2.15. That represents a 51% increase.

Sales for the fourth quarter were $619 million, as against $542 million in FY04’s final quarter. Full-year sales were $2.3 billion, 17% higher than last year’s $2.0 billion. Both the quarterly and full-year sales figures were record levels for the company.

Kennametal chairman, president, and CEO Markos I. Tambakeras elaborated: “Each of our three business groups, Metalworking Solutions and Services, Advanced Materials Solutions, and J&L; Industrial Supply, performed at record levels in both sales and earnings. Market penetration, pricing, and the underlying strength of our served end-markets all contributed to our performance.”

Tambakeras went on to note that Kennametal’s FY05 results were a function of the successful implementation of a corporate transformation strategy involving rapid expansion of the advanced materials and engineered components portfolio, among other factors. Rising raw material prices were overcome this year, but they will continue to present a challenge for pricing strategies in FY06.

Other highlights of the 2005 fiscal year for Kennametal included a 62% rise in net income, from $74 million to $119 million; free operating cash flow for the year of $118 million; and the acquisition of Extrude Hone for approximately $134 million, an addition to the company’s Advanced Materials Solutions segment.

Economic indicators project continued growth through fiscal 2006 in North America and the rest-of-the world markets, but modest growth at best in European markets in which the affiliated companies of Kennametal in Europe operate.

Zund, NestONE in Partnership to Provide CAD/CAM System in USA

Zund America Inc., a subsidiary of the Swiss company Zund Systemtechnik AG, is partnering with NestONE Solutions to provide the JetCAM Expert CAD/CAM solution to the US market for its range of digital cutting machine tools for the aerospace, automotive, marine, and other industries. JetCAM Expert, nesting software specialized for the sheet metal and aerospace industries, is produced and developed by JetCAM International. NestONE Solutions is a US JetCAM reseller.

The agreement is intended to offer significant advantages to customers that utilize Zund machine tools in conjunction with the JetCAM Expert CAD/CAM system. It should increase production speeds, allow tighter nesting, and allow users to take fullest advantage of the Zund variety of bed sizes and tooling options and Zund’s unique conveyor system. A production solution offered by Zund and powered by JetCAM CAD/CAM will provide customers with an unprecedented price-to-performance ratio, says Zund. Along with higher production throughput, customers should see considerable reductions in scrap.

JetCAM International has already developed a postprocessor to support the advanced functions of the Zund cutter.

Commented Oliver Zund, president of Zund America, “Our strategy is to offer a total solution for manufacturers in the aerospace, marine, automotive, and other markets to best utilize our machine tools. In this age of ever increasing material costs, JetCAM provides Zund customers competitive advantage and the highest material optimization possible.”

David Lichtenwalner, president of NestONE Solutions, seconded his partner: “The superior cutting capabilities offered by Zund provide an unparalleled opportunity for producing parts of the highest quality while maximizing material utilization by using the JetCAM high-performance nester.”