Kennametal Explained

Kennametal Inc.
Type:Public
Traded As:

S&P 600 component
Foundation:1938
Location:Pittsburgh, Pennsylvania
Key People:Sanjay Chowbey, President and CEO[1]
Num Employees:approximately 10,000 worldwide
Revenue:$2.4 billion USD
Industry:Metals
Products:aggregates, metalworking, abrasive flow products, cutting tools, metallurgy, mining equipment, woodworking, fluid handling
Homepage:www.kennametal.com

Kennametal, Inc. is a manufacturer of high-performance cutting tools and engineered components used in the aerospace, defense, transportation and oil and gas drilling industries. Its customer base is global.[2]

History

Kennametal was founded in 1938 by Philip M. McKenna in the Latrobe, Pennsylvania area.[3] [4] The company evolved from Vanadium Alloys Steel Company (VASCO), founded in 1910 by the McKenna family with its headquarters in Latrobe, Pennsylvania. While research director of VASCO, metallurgist Philip McKenna developed and received a patent for a tungsten-titanium carbide composition. McKenna formed Kennametal, Inc. for the purpose of marketing this alloy.[5]

The company's original flagship product, known as "Kennametal", was introduced in the late 1930s. It was described as "much harder than the hardest tool steel," which enabled high-rate steel cutting not possible previously.[6] In July 1940, Kennametal of Canada Ltd. was organized for the purpose of "manufacturing Kennametal, the new steel cutting carbide, for Canada and British dominions."[7] In November 1940, United States Steel Export Company reached an agreement to sell Kennametal tools, tool blanks, drawing dies and other Kennametal products in foreign markets.[8]

During World War II, more than 50% of the artillery shells produced in the United States were machined with the Kennametal product.[9] During this period the company developed a new type of anti-tank projectile made of tungsten with a hard carbide core.[10]

The company has expanded through acquisitions,[11] [12] including the purchase of Widia Group (2002, 188 million Euros)[13] Extrude Hone Corp. (2005, $137 million)[14] and Allegheny Technologies' tungsten materials unit (2013, $605 million).[15]

Production

Kennametal products:[16]

Brands

In 2009, Kennametal announced that they migrated all its current brands into two distinct portfolios: WIDIA Products Group and Kennametal Products Group.[17]

WIDIA Products Group

This group markets several brands: WIDIA, Hanita, and WIDIA GTD.[18] The GTD stands for Greenfield Tap & Die and was initially formed in 1912.[19]

Kennametal Products Group

Kennametal Products Group provides metalworking tools, metal powders, and wear-resistant coatings such as Conforma-Clad and Stellite.[20]

Financial Results

For fiscal years 2020 through 2024, results ranged from a loss of $5.66 million to net income of $118.46 million. With respect to the fiscal year 2020 loss, the company said: "The effects of COVID-19 were felt in every region during the quarter and created a challenging environment."[21] Profitability improved in the following fiscal year.

In September 2024, Moody's Ratings affirmed Kennametal's Baa3 credit rating, and opined that the outlook for the rating was "stable."[22]

Net Income (Loss)
Year $ millions
2020[23] ($ 5.66)
2021 $ 54.43
2022 $ 114.62
2023 $ 118.46
2024 $ 109.32

See also

External links

Notes and References

  1. News: Napsha . Joe . Kennametal CEO to retire; replacement named . 29 November 2024 . Tribune-Review . 15 March 2024.
  2. News: Trombetta . Peter . Rating Action: Moody's Ratings affirms Kennametal's Baa3 senior unsecured rating; outlook is stable . 12 November 2024 . Moody's Ratings . 11 September 2024.
  3. News: Kennametal Inc: Company and People . 11 November 2024 . Barron's.
  4. Web site: About Us. www.kennametal.com. live. https://web.archive.org/web/20151215205028/http://www.kennametal.com/en/about-us/company-profile.html. 2015-12-15.
  5. Web site: Derdak . Thomas . Kennametal, Inc. . Encyclopedia.com . 10 November 2024.
  6. News: Kennametal Being Used in Many Ways . 11 November 2024 . Pittsburgh Post-Gazette . 4 September 1946.
  7. News: Kennametal of Canada Organized with Offices in Hamilton, Ontario. . 11 November 2024 . Toronto Star at Newspapers.com . 2 July 1940.
  8. News: Steel Export Unit to Sell Kennametal . 11 November 2024 . Pittsburgh Sun-Telegraph via Newspapers.com . 12 November 1940.
  9. News: Research and Engineering Pace Company . 12 November 2024 . Latrobe Bulletin via Newspapers.com . 15 December 1952.
  10. News: Plant Expands at Latrobe . 11 November 2024 . Pittsburgh Post-Gazette via Newspapers.com . 14 May 1945.
  11. Web site: Kennametal - M&A Summary and Business Overview . Mergr . 29 November 2024.
  12. Web site: List of 6 Acquisitions by Kennametal . Tracxn . Tracxn Technologies Ltd. . 29 November 2024.
  13. Web site: Kennametal Announces Completion of Widia Acquisition Kennametal Inc. . 2022-04-16 . investors.kennametal.com . en.
  14. Web site: Kennametal, Inc. Steels Itself for M&A . The Mddle Market . Mergers and Acquisitions Report and SourceMedia, Inc. . 29 November 2024.
  15. News: Boselovic . Len . Kennametal agrees to acquire Allegheny Technologies unit for $605 million. . 29 November 2024 . Pittsburgh Post-Gazette . 16 September 2013.
  16. Web site: Products. www.kennametal.com. 2015-11-21. live. https://web.archive.org/web/20151121145929/http://www.kennametal.com/en/products.html. 2015-11-21.
  17. Web site: Kennametal Launches WIDIA Products Group . 2022-04-16 . www.kennametal.com . en-US.
  18. Web site: Services . 2022-04-16 . www.widia.com . en-US.
  19. Web site: WIDIA GTD . 2022-04-16 . www.widia.com . en-US.
  20. Web site: Products . 2022-04-16 . www.kennametal.com . en-US.
  21. Web site: Kennametal Announces Fourth Quarter and Fiscal Year 2020 Results . Kennametal corporate web site . 11 November 2024.
  22. News: Moody's Investors Service affirms Kennametal at "Baa3" (LT- local currency credit rating); outlook stable . 11 November 2024 . CBonds.
  23. Web site: Google Finance: Kennametal Inc.. Google Finance, Kennametal Inc. . 11 November 2024.

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