Item 2.02 Results of Operations and Financial Condition
On January 12, 2009, Kennametal Inc. (Kennametal or the Company) announced
revised fiscal 2009 second quarter earnings guidance.
As a result of lower sales volumes driven by the downturn in global markets,
Kennametal expects to report an organic sales decline of approximately
10 percent for its fiscal 2009 second quarter ended December 31, 2008. Earnings
per diluted share (EPS) for its fiscal 2009 second quarter are expected to be
approximately $0.34, excluding charges of approximately $0.14 per share relating
to restructuring. Reported EPS for the quarter are expected to be approximately
$0.20.
EPS, excluding charges relating to restructuring is a non-generally accepted
accounting principles (GAAP) financial measure. The most comparable GAAP measure
is EPS. Management adjusts for these charges in measuring and compensating
internal performance and to more easily compare the Company's financial
performance period-to-period. Management believes that the presentation of this
non-GAAP financial measure provides useful information about the results of
operations of the Company for the period. Management believes that investors
should have available the same information that management uses to assess
operating performance and determine compensation. This non-GAAP measure should
not be considered in isolation as a substitute for the most comparable GAAP
measure.
A copy of the Company's announcement is furnished under Exhibit 99.1 attached
hereto. This information shall not be deemed "filed" for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
incorporated by reference into any filing under the Securities Act of 1933, as
amended, (the "Securities Act") or the Exchange Act, except as shall be
expressly set forth by specific reference in such a filing.
Item 2.05 Costs Associated with Exit or Disposal Activities
On January 12, 2009, Kennametal also announced additional actions involving a
reduction in the Company's global salaried workforce by approximately 800
positions. These actions, which are expected to generate annual pre-tax savings
of approximately $70 million, will be completed within the next three to six
months. The Company anticipates recording pre-tax cash charges related to these
actions of approximately $40 million.
This Form 8-K contains "forward-looking" statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act, including
statements regarding the number of employees affected by the workforce
reduction, the amount and timing of the estimated savings, and anticipated
charges relating to these actions. These statements are based on current
expectations that involve inherent risks and uncertainties. Should one or more
of these risks or uncertainties materialize, or should the assumptions
underlying the forward-looking statements prove incorrect, actual outcomes could
vary materially from those indicated. Factors that could cause actual results to
differ materially from those we expect include: our ability to implement the
workforce reduction and realize the related savings; the risk that these actions
or other restructuring actions result in greater charges or less cost savings;
continued worsening of global and regional economic conditions; availability and
cost of the raw materials we use to manufacture our products; our ability to
protect our intellectual property in foreign jurisdictions; our foreign
operations and international markets, such as currency exchange rates, different
regulatory environments, trade barriers, exchange controls, and social and
political instability; energy costs; commodity prices; competition; integrating
recent acquisitions, as well as any future acquisitions, and achieving the
related expected savings and synergies; business divestitures; demands on
management resources; environmental remediation matters; demand for and market
acceptance of new and existing products; future terrorist attacks or acts of
war; and labor relations. These and other risks are more fully described in
Kennametal's latest annual report on Form 10-K and its other periodic filings
with the Securities and Exchange Commission. We undertake no obligation to
release publicly any revisions to forward-looking statements as a result of
future events or developments.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Kennametal Inc. January 12, 2009 Announcement
Table of Contents
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KENNAMETAL INC.
Date: January 12, 2009 By: /s/ Wayne D. Moser
Wayne D. Moser
Vice President Finance and Corporate
Controller
