Kennametal Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Kennametal Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing financial activities and hedging instruments.</b>

AI Summary

KENNAMETAL INC (KMT) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Kennametal Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the period from July 1, 2023, to March 31, 2024. The company's fiscal year ends on June 30. The filing includes data related to cash flow hedging and range forward contracts. Fair value measurements recurring, specifically Level 2 inputs, are detailed as of March 31, 2024, and June 30, 2023.

Why It Matters

For investors and stakeholders tracking KENNAMETAL INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and position of Kennametal Inc. for the third quarter of its fiscal year. The inclusion of details on hedging instruments like range forward contracts and currency forward contracts indicates the company's strategies to manage financial risks, particularly currency fluctuations.

Risk Assessment

Risk Level: low — KENNAMETAL INC shows low risk based on this filing. The filing is a standard 10-Q report, providing routine financial disclosures without immediate red flags.

Analyst Insight

Monitor future filings for trends in revenue, net income, and the impact of hedging strategies on financial results.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed period of report)
• 2024-05-10 — Filing Date (Filed as of date)
• 0630 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• KENNAMETAL INC (company) — Filer name
• KMT (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-10 (date) — Filing date
• PA (location) — State of incorporation
• 3541 (industry_code) — Standard Industrial Classification

FAQ

Industry Context

Kennametal Inc. operates in the machine tools and metal cutting industry, supplying industrial tooling, engineering, and manufacturing services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports to the SEC.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements and management's discussion and analysis.
2. Analyze the company's hedging strategies and their impact on reported earnings.
3. Compare Kennametal's performance metrics with industry peers in subsequent filings.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-10: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a timely update on the company's financial condition and performance.)

Cash Flow Hedging

Using financial instruments to hedge risks associated with future cash flows. (Indicates strategies to mitigate financial risks, such as interest rate or foreign currency fluctuations.)

Range Forward Contracts

A type of derivative contract used to lock in a price range for a future transaction. (Used by companies to manage price volatility for commodities or currencies.)

Year-Over-Year Comparison

This is the first 10-Q filing for the period ending March 31, 2024, following the previous 10-Q for the period ending December 31, 2023.

Key Financial Figures

• $1.25 — ch registered Capital Stock, par value $1.25 per share KMT New York Stock Exchange

Filing Documents

• kmt-20240331.htm (10-Q) — 1453KB
• kmt331202410-qex311.htm (EX-31.1) — 10KB
• kmt331202410-qex312.htm (EX-31.2) — 10KB
• kmt331202410-qex321.htm (EX-32.1) — 6KB
• 0000055242-24-000026.txt (&nbsp;) — 8620KB
• kmt-20240331.xsd (EX-101.SCH) — 50KB
• kmt-20240331_cal.xml (EX-101.CAL) — 68KB
• kmt-20240331_def.xml (EX-101.DEF) — 389KB
• kmt-20240331_lab.xml (EX-101.LAB) — 723KB
• kmt-20240331_pre.xml (EX-101.PRE) — 579KB
• kmt-20240331_htm.xml (XML) — 1421KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. Financial Statements Condensed Consolidated Statements of Income (Unaudited) Three and nine months ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and nine months ended March 31, 2024 and 2023 4 Condensed Consolidated Balance Sheets (Unaudited) March 31, 2024 and June 30, 2023 5 Condensed Consolidated Statements of Cash Flow (Unaudited) Nine months ended March 31, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22 3. Quantitative and Qualitative Disclosures About Market Risk 33 4. Controls and Procedures 33 5. Other Information 33

- OTHER INFORMATION

PART II - OTHER INFORMATION 1. Legal Proceedings 34 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 34 6. Exhibits 35

Signatures

Signatures 36 2 Table of Contents FORWARD-LOOKING INFORMATION This Quarterly Report on Form 10-Q contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that do not relate strictly to historical or current facts. You can identify forward-looking statements by words such as "should," "anticipate," "estimate," "approximate," "expect," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance or events. We have also included forward-looking statements in this Quarterly Report on Form 10-Q concerning, among other things, our strategy, goals, plans and projections regarding our financial position, liquidity and capital resources, results of operations, market position and product development. These statements are based on current estimates 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, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: uncertainties related to changes in macroeconomic and/or global conditions, including as a result of increased inflation and Russia's invasion of Ukraine and the resulting sanctions on Russia; the adverse effects of the COVID-19 pandemic and its impacts on our business operations, financial results and financial position and on the industries in which we operate and the global economy generally; other economic recession; our ability to achieve all anticipated benefits of restructuring, simplification and modernization initiatives; Co

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS KENNAMETAL INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, Nine Months Ended March 31, (in thousands, except per share amounts) 2024 2023 2024 2023 Sales $ 515,794 $ 536,036 $ 1,503,591 $ 1,527,949 Cost of goods sold 362,532 368,122 1,047,834 1,057,177 Gross profit 153,262 167,914 455,757 470,772 Operating expense 108,684 113,273 327,674 327,308 Restructuring and other charges, net (Note 6) 6,465 ( 994 ) 10,585 ( 2,499 ) Amortization of intangibles 2,886 3,164 8,674 9,476 Operating income 35,227 52,471 108,824 136,487 Interest expense 6,777 7,747 20,225 21,399 Other (income) expense, net ( 76 ) 986 ( 674 ) 2,584 Income before income taxes 28,526 43,738 89,273 112,504 Provision for income taxes 7,816 10,672 13,866 26,878 Net income 20,710 33,066 75,407 85,626 Less: Net income attributable to noncontrolling interests 1,734 1,129 3,266 3,594 Net income attributable to Kennametal $ 18,976 $ 31,937 $ 72,141 $ 82,032 PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS Basic earnings per share $ 0.24 $ 0.40 $ 0.91 $ 1.01 Diluted earnings per share $ 0.24 $ 0.39 $ 0.90 $ 1.01 Basic weighted average shares outstanding 79,229 80,611 79,655 80,967 Diluted weighted average shares outstanding 79,849 81,281 80,197 81,525 KENNAMETAL INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2024 2023 2024 2023 Net income $ 20,710 $ 33,066 $ 75,407 $ 85,626 Other comprehensive income, net of tax Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges 16 — ( 43 ) — Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges ( 159 ) ( 192 ) ( 544 ) ( 577 ) Unrecognized net pension and other postretirement benefit plans gain (loss) 474 ( 1,059 ) 239 ( 1,106 ) Reclassification of net pension and other postretirement benefit pla

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