Kennametal reports sales of US$488 million, compared with US$524 million in the same quarter of 2016. Sales decreased by 7%, reflecting a 6% decline due to divestiture, a 2% decrease due to fewer business days and a 1% unfavorable currency exchange impact, offset partially by 2% organic growth.

Operating income was US$24 million, compared to operating loss of US$234 million in Q2 last year. Adjusted operating income was US$36 million, compared to US$18 million in the prior year quarter.

For the first half of 2017, sales were US$965 million, compared to US$1,079 million in the same period last year. Sales decreased by 11%, driven by divestiture impact of 8%, 1% unfavorable currency exchange impact, 1% decrease due to fewer business days and 1% organic decline.

‘The second quarter results reflect positive performance from our growth and cost reduction initiatives,’ commented Ron De Feo, Kennametal president and CEO. ‘There is much work to do however as we strive to simplify, modernize and energize this company. The progress we are making in lowering employment costs is generally on track and evident now in our run rates. We are at the beginning stages of product line simplification, and the End-to-End initiatives by product line are accelerating as we examine all our value streams for simplification and efficiency.’

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.