Kennametal orders hint at stronger 1st-qtr sales

NEW YORK, Aug 13 (BestGrowthStock) – July order rates at industrial
tool maker Kennametal Inc (KMT.N: ) suggested Wall Street’s
quarterly sales estimates will have to rise, even though the
pace slowed slightly from the prior two months as currency
became a headwind.

Total company orders for the three months ended July 31
were up 37 percent, with the strong dollar shaving two
percentage points from that growth.

Order rates in June and May were up a stronger 40 percent
year-over-year; orders in both months were slightly boosted by
currency.

Stripping out currency, acquisitions and dispositions,
order rates were the same in July as in June.

“While there is a generally short lag between orders and
revenue, Kennametal’s order rates have been a good predictor of
quarterly revenue trends,” said J.P. Morgan analyst Ann Duignan
in a research note, estimating fiscal first-quarter revenue of
about $561 million.

Analysts, on average, estimate first-quarter sales of $505
million, according to Thomson Reuters I/B/E/S.

Order rates for the industrial segment showed particular
growth in general engineering and transportation markets, while
Kennametal’s infrastructure segment showed higher orders from
the energy sector, the company said.

Kennametal shares were down 0.7 percent at $26.29 in early
trading on the New York Stock Exchange.

Kennametal was in a majority of U.S. companies whose
quarterly profits beat Wall Street expectations in the earnings
season now ending. [ID:nN29246587]
(Reporting by Nick Zieminski, editing by Dave Zimmerman)

Kennametal orders hint at stronger 1st-qtr sales