Kennametal Inc. has a market cap of $2.18 billion; its shares were traded at around $26.62 with a P/E ratio of 24.2 and P/S ratio of 1.2. The dividend yield of Kennametal Inc. stocks is 1.8%.KMT is in the portfolios of Chuck Royce of Royce& Associates, Pioneer Investments, Columbia Wanger of Columbia Wanger Asset Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:Our restructuring programs remain on track to deliver the anticipated annual ongoing pre-tax savings of $155 million to $160 million once all programs are fully implemented. In 2010, the programs implemented through June 30, 2010 delivered benefits of approximately $137 million. We remain confident in our ability to respond quickly to further changes in global markets while continuing to serve our customers and preserve our competitive strengths. At the same time, we continue to focus on and maximize cash flow and liquidity. Our operating flexibility was enhanced with a new $500 million five-year, multi-currency, revolving credit facility that extends to June 2015. Further discussion and analysis of the developments in our business is set forth in MD&A.
Research and development expenses included in operating expense totaled $28.0 million, $27.6 million and $32.6 million in 2010, 2009 and 2008, respectively.
Reserves for other potential environmental issues at June 30, 2010 and 2009 were $5.2 million and $5.3 million, respectively. The reserves that we have established for environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, and take into consideration our prior experience in remediation and that of other companies, as well as public information released by the USEPA, other governmental agencies, and by the PRP groups in which we are participating. Although the reserves currently appear to be sufficient to cover these environmental liabilities, there are uncertainties associated with environmental liabilities, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. The reserved and unreserved liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the U.S. government on these matters.
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