Operating income was US$75 million, compared with US$103 million in the same quarter last year. Stellite contributed US$2.9 million of operating income in the current year quarter, compared with a net operating loss of US$4.6 million in the prior year period.

The industrial segment sales of US$374 million declined 11% from US$419 million in the prior Q3. 

Sales declined 12% in general engineering and 2% in transportation, while aerospace and defence sales grew 14%. 

"We're navigating well in a challenging economic environment, while strengthening our business to be ready to serve our customers as growth returns,” said Carlos Cardoso, Kennametal chairman, president and CEO. “In addition, our Stellite acquisition – which completed its first year with Kennametal on March 1 – expands our growth prospects in the energy and power generation sectors.”

Due to a slower than anticipated recovery in the company's industrial end markets, as well as continued softness in road construction, underground mining, and oil and gas markets in the US, Kennametal expects fiscal 2013 sales decline in the range of 5 to 6%, with organic sales decline ranging from 8 to 9%. Previously, the company had forecast total sales decline ranging from 2 to 4% with organic sales decline of 7 to 9%.

Find us on Google? Click here to sign up to receive our weekly e-newsletter and get news sent directly to your inbox!