US cutting and wear resistant tools manufacturer Kennametal says it continues to see strong underlying demand in its core markets, with aerospace, energy and earthworks “at double-digit year-on-year growth” rates in the three months to the end of September.
The company booked first-quarter sales of US$495 million, up 2% yoy and “in line with expectations”, according to CEO Christopher Rossi.
“Looking ahead, despite macroeconomic uncertainties, we see demand in line with normal seasonal patterns through this fiscal year,” Rossi said. “Regardless of the exact path the economy takes, however, we remain confident in our proven ability to advance our strategic initiatives and secure market leading positions.”
Sales in the current quarter are expected to be $480-500m, with a circa-$40m headwind from USD strength compared to the second quarter of FY22 and about 7% of price realisation. FY23 sales are pegged at $2-2.08 billion, including a $130m currency headwind.
Kennametal posted sales of $2b last year.