Kennametal Inc. is in a strong position to ride out the economic crisis, thanks to the "retooling" the company has undergone over the past five years, the chief executive told shareholders Tuesday.
Kennametal, a specialty toolmaker and advanced materials producer, can withstand the economic cycles because of a long-range plan to grow profits, the growth of its advanced materials group and the movement toward spreading its revenue base equally worldwide, CEO Carlos M. Cardoso told shareholders at the annual meeting at the company's Unity headquarters.
Five years ago, 56 percent of Kennametal's sales were in North America; that figure has dropped to 47 percent, Cardoso said.
The company had $2.7 billion in sales in fiscal year 2008, up from $2.38 billion in fiscal year 2007.
Kennametal this past year used acquisitions to replace some of its revenue sources and intends to continue buying and selling businesses "to further reduce our cost structure and streamline the manufacturing footprint," Cardoso said. The company is in the process of closing its Chestnut Ridge plant.
Cardoso said he does not believe the nation's economy is likely to rebound from its financial problems until the second half of 2009.
Kennametal, whose fiscal year ended June 30, plans to announce its first-quarter earnings on Thursday.
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