Kennametal reports that it has reduced its previously announced financial expectations for 2016. 

At this point in time, as a result of lower revenue expectations and the company's current lack of visibility to its end markets, the company expects as much as a 30-60% decrease in previously announced guidance for fiscal 2016 adjusted earnings per diluted share.

The company expectations have been negatively impacted by declines in its end markets, shown by continued declines in industrial production indices since its previous report in early November, particularly China automotive and US and China coal mining, as well as further reductions in O&G activity.

‘Our served end markets are experiencing significant volatility and we are being challenged by the current global macroeconomic environment,’ said Don Nolan, president and CEO said.  ‘As a result, our visibility into our end markets is poor and we have decided to reduce guidance for fiscal 2016.  In this difficult time of end-market weakness, we will focus on controlling what we can control by tightly managing our costs and working capital, while not losing the capability to respond when the markets recover.’

‘Despite weak market conditions we continue to make meaningful progress on critical initiatives to strengthen our foundation and ultimately grow our business, which we will outline in our meeting with investors tomorrow. When market conditions improve, we are confident that Kennametal will deliver substantially improved results.’

This story is reprinted from material from Kennametal, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.