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Kennametal Inc. Reports Operating Results (10-Q)

November 05, 2010 | About:
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10qk

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Kennametal Inc. (KMT) filed Quarterly Report for the period ended 2010-09-30.

Kennametal Inc. has a market cap of $2.86 billion; its shares were traded at around $34.93 with a P/E ratio of 31.8 and P/S ratio of 1.6. The dividend yield of Kennametal Inc. stocks is 1.3%.KMT is in the portfolios of Chuck Royce of Royce& Associates, Pioneer Investments, Columbia Wanger of Columbia Wanger Asset Management, Bruce Kovner of Caxton Associates.
This is the annual revenues and earnings per share of KMT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of KMT.


Highlight of Business Operations:

Cash Flow Provided by Operating Activities During the three months ended September 30, 2010, cash flow provided by operating activities was $26.4 million, compared to $17.3 million for the prior year period. Cash flow provided by operating activities for the current year period consisted of net income and non-cash items amounting to $68.7 million, partially offset by changes in certain assets and liabilities netting to $42.3 million. Contributing to the changes in certain assets and liabilities was an increase in inventory of $34.0 million driven by an increase in production to meet expected increases in demand, a decrease in accounts payable and accrued liabilities of $9.6 million, and a decrease in other of $5.8 million, partially offset by an increase in domestic and foreign income taxes of $6.3 million.

During the three months ended September 30, 2009, cash flow provided by operating activities consisted of net loss and non-cash items amounting to $19.6 million of cash generation partially offset by changes in certain assets and liabilities netting to $2.3 million. Contributing to the changes in certain assets and liabilities were a decrease in accounts receivable of $2.2 million and a decrease in inventories of $16.8 million, partially offset by a decrease in accounts payable and accrued liabilities of $6.7 million, a decrease in accrued income taxes of $5.3 million and a decrease in other liabilities of $9.3 million.

At September 30, 2010, total assets increased $112.9 million to $2,380.7 million from $2,267.8 million at June 30, 2010. Total liabilities increased $8.7 million to $943.1 million at September 30, 2010 from $934.4 million at June 30, 2010.

Working capital was $608.9 million at September 30, 2010, an increase of $86.0 million from $522.9 million at June 30, 2010. The increase in working capital was driven primarily by an increase in inventories of $53.8 million driven by an increase in production to meet expected increases in demand, an increase in accounts receivable of $16.1 million due to the increase in sales, an increase in cash and cash equivalents of $6.1 million, and a decrease in current maturities of long-term debt and capital leases, including notes payable of $17.9 million, partially offset by an increase in accrued income taxes and accrued expenses of $15.5 million. Foreign currency effects accounted for $19.7 million, $16.9 million, $9.8 million and $5.9 million of the change in inventory, accounts receivable, cash and cash equivalents and accrued income taxes and accrued expenses, respectively.

Property, plant and equipment, net increased $12.9 million from $664.5 million at June 30, 2010 to $677.4 million at September 30, 2010, primarily due to capital additions of $10.1 million, favorable foreign currency impact of $23.4 million, partially offset by, depreciation expense of $19.8 million.

Kennametal shareowners’ equity was $1,417.1 million at September 30, 2010, an increase of $101.6 million from $1,315.5 million at June 30, 2010. The increase was primarily due to net income attributable to Kennametal of $34.9 million and foreign currency translation adjustments of $72.7 million, partially offset by cash dividends paid to shareowners of $10.0 million.

Read the The complete Report

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