Kennametal Inc. · NYSE:KMT
Kennametal — Q3 FY2015 Earnings Presentation
6 slides from Kennametal's earnings presentation, May 5, 2015
Slide 1: Fiscal 2015 Third Quarter Supplemental Presentation Materials
Fiscal 2015 Third Quarter Supplemental Presentation Materials Donald Nolan, President & CEO Martha Fusco, Interim CFO, VP Finance & Corporate Controller May 5, 2015 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation may be forward-looking in nature, or "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do no
Slide 3: Key Initiatives – Update
Key Initiatives – Update Actions to drive improved performance and more effective capital deployment: • Launching Phase 3 restructuring initiative – Identified additional $25-$30M in cost savings – Expect to complete by March 2017 • Total annualized restructuring savings of $115-$135M • Portfolio ma
Slide 4: Capital Allocation
Capital Allocation • Prioritize capital investments to drive margin enhancement • Remain balanced in returning cash to shareholders – Dividends – Share repurchases, over the longer-term • Debt reduction of $158M FY15 to-date; committed to maintaining investment-grade ratings • Doesn’t make sense to
Slide 5: March Quarter Financial Update
March Quarter Financial Update (on an adjusted basis, in USD-000s, except percentages and per share amounts) Restructuring and Related Charges and Savings (Pre-Tax) Estimated Charges Charges To Date Estimated Annualized Savings Savings To Date Expected Completion Date Phase 1 $55M-$60M $44M $50M-$55
Slide 6: Outlook
Outlook • FY15 debt reduction of $250M - $300M o Utilizing Q4 cash redeployment • Maintain $2.00 mid-point guidance o Organic declines offset by accelerated restructuring and additional cost actions Total Sales (7%) - (8%) Organic Sales (5%) - (6%) Effective Tax Rate (excluding special charges) 22%