EX-99.1 2 kmt3312018exhibit991.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
kmtheadera01a01a01a12.jpg
FOR IMMEDIATE RELEASE:
DATE: May 2, 2018             
Investor Relations
CONTACT: Kelly Boyer
PHONE: 412-248-8287
Corporate Relations - Media
CONTACT: Christina Sutter
PHONE: 724-539-5708
KENNAMETAL ANNOUNCES STRONG FISCAL 2018 THIRD QUARTER RESULTS
–
Year-over-year sales growth of 15 percent; organic sales growth of 11 percent
–
Year-to-date net cash flow from operating activities of $181 million; free operating cash flow of $54 million
–
Reported earnings per diluted share (EPS) of $0.61; adjusted EPS of $0.70
–
Raising midpoint of adjusted EPS outlook; increasing free operating cash flow outlook for full fiscal year 2018
–
Modernization starting to drive improved results along with continuing benefits from simplification
–
Price realization outpaced raw material inflation in the quarter; trend expected to continue for the fiscal year
PITTSBURGH, (May 2, 2018) – Kennametal Inc. (NYSE: KMT) today reported results for its fiscal 2018 third quarter ended March 31, 2018, with EPS of $0.61, compared with EPS of $0.48 in the prior year quarter. Adjusted EPS was $0.70 in the current quarter compared with $0.60 in the prior year quarter.
“I am pleased to report another strong operating quarter for Kennametal,” commented Chris Rossi, Kennametal president and CEO. “Our end markets are robust, and the work we are doing on our three initiatives - growth, simplification and modernization - is driving improvements to results and margins. We are intensely focused on executing our multi-year plan.”
Mr. Rossi continued, “We are aggressively pursuing our simplification efforts and starting to get traction on the execution of our modernization initiatives, which contributed to our strong results. We expect to see increased benefits from these initiatives going forward in line with our multi-year plan. In addition, even in the face of rising raw material costs, price realization outpaced raw material cost inflation, and we expect to sustain that trend for the fiscal year. As a result of the combination of these factors, we are raising the midpoint of our adjusted EPS outlook and expectations for cash flow."
This earnings release contains non-GAAP financial measures, reconciliations for which are set forth in the tables attached to this earnings release, and corresponding descriptions are contained in the company’s Current Report on Form 8-K, which was filed with the Securities and Exchange Commission (SEC) on May 2, 2018.

Fiscal 2018 Third Quarter Key Developments
 
•
Sales were $608 million, compared with $529 million in the prior year quarter. Sales increased by 15 percent, driven by 11 percent organic growth and a 6 percent favorable currency exchange impact, partially offset by a 2 percent decrease due to fewer business days. Sales grew in all segments, end markets and regions.

•
Pre-tax restructuring and related charges were $2 million, or $0.01 on a per share basis, and pre-tax benefits from cost savings initiatives were approximately $41 million. In the prior year quarter, pre-tax restructuring and related charges were $10 million, or $0.12 per share, and pre-tax benefits were approximately $30 million.

1



•
Operating income was $85 million, compared to $58 million in the prior year quarter. Adjusted operating income was $87 million, compared to $68 million in the prior year quarter. The increase in adjusted operating income is due primarily to organic sales growth, incremental restructuring benefits, favorable currency exchange and mix, partially offset by higher raw material costs, decreased manufacturing efficiency in part due to modernization efforts in progress, salary inflation and higher variable compensation expense due to higher than expected operating results. Price realization outpaced raw material cost inflation. Operating margin was 14.0 percent in the current period compared to 11.0 percent in the prior year quarter. Adjusted operating margin was 14.3 percent in the current period compared to 12.8 percent in the prior year quarter.

•
The reported effective tax rate (ETR) was 31.2 percent and the adjusted ETR was 23.1 percent. The difference between the reported and adjusted ETR in the quarter is driven primarily by a discrete charge of $6 million, or $0.08 per share, to record adjustments to the provisional toll tax associated with U.S. tax reform. For the prior year quarter, the reported ETR was 19.0 percent and the adjusted ETR was 15.3 percent. The change in the adjusted ETR year-over-year is primarily due to U.S. income in the prior year quarter not being tax-effected and current quarter U.S. income being tax-effected now that a valuation allowance is no longer recorded on U.S. deferred tax assets.

•
EPS was $0.61, compared with $0.48 in the prior year quarter. Adjusted EPS was $0.70 in the current quarter and $0.60 in the prior year quarter. Reported EPS in the current quarter includes a charge related to U.S. tax reform of $0.08 and restructuring and related charges of $0.01, and for the prior year quarter includes restructuring and related charges of $0.12.

•
Year-to-date net cash flow from operating activities was $181 million compared to $83 million in the prior year period. Year-to-date free operating cash flow was $54 million compared to negative $7 million in the prior year period. The change in free operating cash flow is driven primarily by higher cash from operations before changes in certain other assets and liabilities and lower restructuring payments, offset partially by higher working capital and capital expenditures.

•
Net income attributable to Kennametal was $51 million compared with $39 million in the prior year quarter. EBITDA was $109 million, compared with $82 million in the prior year quarter. Adjusted EBITDA was $111 million in the current quarter and $91 million in the prior year quarter.

Segment Developments for the Fiscal 2018 Third Quarter
 
•
Industrial sales of $333 million increased 15 percent from $289 million in the prior year quarter, reflecting organic sales growth of 10 percent and an 8 percent favorable currency exchange impact, partially offset by a 3 percent decrease due to fewer business days.

•
Industrial operating income was $53 million compared to $39 million in the prior year quarter. Adjusted operating income was $54 million compared to $44 million in the prior year quarter, driven primarily by organic sales growth, incremental restructuring benefits and favorable currency exchange impact, partially offset by decreased manufacturing efficiency in part due to modernization efforts in progress, higher variable compensation expense due to higher than expected operating results, and salary inflation. Industrial operating margin was 15.9 percent compared to 13.3 percent in the prior year quarter. Industrial adjusted operating margin was 16.2 percent compared with 15.1 percent in the prior year quarter.

•
Widia sales of $52 million increased 13 percent from $46 million in the prior year quarter, driven by organic sales growth of 9 percent and a 5 percent favorable currency exchange impact, partially offset by a 1 percent decrease due to fewer business days.

•
Widia operating income was $2 million compared to $1 million in the prior year quarter. The increase was due primarily to organic sales growth, partially offset by slightly unfavorable mix. Widia operating margin was 3.1 percent compared with 1.3 percent in the prior year quarter. Widia adjusted operating margin was 3.2 percent compared with 2.3 percent in the prior year quarter.

•
Infrastructure sales of $223 million increased 15 percent from $193 million in the prior year quarter, driven by organic sales growth of 14 percent and a 3 percent favorable currency exchange impact, partially offset by a 2 percent decrease due to fewer business days.

2



•
Infrastructure operating income was $32 million compared to $20 million in the prior year quarter. Adjusted operating income was $32 million compared to $24 million in the prior year quarter, primarily driven by organic sales growth, favorable mix, favorable currency exchange impact and incremental restructuring benefits, partially offset by higher raw material costs, decreased manufacturing efficiency in part due to modernization efforts in progress and higher compensation expense. Infrastructure operating margin was 14.3 percent compared to 10.3 percent in the prior year quarter. Infrastructure adjusted operating margin was 14.6 percent compared with 12.3 percent in the prior year quarter.

Fiscal 2018 Year-to-Date Key Developments

•
Sales were $1,722 million, compared to $1,493 million in the prior year. Sales increased by 15 percent, driven by organic growth of 13 percent and a 3 percent favorable currency exchange impact, partially offset by a 1 percent decrease due to fewer business days.

•
Operating income was $210 million, compared to $73 million in prior year. Adjusted operating income was $220 million in the current period, compared to $126 million in the prior year. Adjusted operating income increased due primarily to organic sales growth, incremental restructuring benefits, favorable mix and favorable currency exchange impact, partially offset by salary inflation, higher raw material costs and higher variable compensation expense due to higher than expected operating results. Operating margin was 12.2 percent, compared to 4.9 percent in the prior year. Adjusted operating margin was 12.8 percent, compared to 8.4 percent in the prior year.

•
EPS was $1.59 in the current year, compared with $0.30 in the prior year. Adjusted EPS was $1.78 in the current year and $0.95 in the prior year.

Outlook

The company now expects adjusted EPS for the full fiscal year to be in the range of $2.55 to $2.65 per share on organic sales growth at the top end of the prior outlook of 9 to 11 percent, a change from the previous adjusted EPS outlook of $2.40 to $2.70 per share. The company now expects free operating cash flow to be $60 to $75 million, which includes expected net capital expenditures near the low end of the previous outlook of $210 to $230 million. The previous outlook of free operating cash flow was $0 to $30 million.

Dividend Declared

Kennametal also announced that its board of directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable on May 30, 2018 to shareholders of record as of the close of business on May 15, 2018.
The company will discuss its fiscal 2018 third quarter results in a live webcast at 8:00 a.m. Eastern Time, Thursday, May 3, 2018. This event will be broadcast live on the company’s website, www.kennametal.com. To access the webcast, select "About Us", “Investor Relations” and then “Events.” A recorded replay of this event will also be available on the company’s website through June 2, 2018.


3


Certain statements in this release 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 not relate strictly to historical or current facts. For example, statements about Kennametal’s outlook for earnings, sales volumes, cash flow and capital expenditures for fiscal year 2018 and our expectations regarding future growth and financial performance are forward-looking statements. Any forward looking statements are based on current knowledge, expectations and 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: economic recession; our ability to achieve all anticipated benefits of restructuring initiatives; our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in Kennametal’s latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

About Kennametal
Celebrating its 80th year as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 11,000 employees are helping customers in more than 60 countries stay competitive. Kennametal generated nearly $2.1 billion in revenues in fiscal 2017. Learn more at www.kennametal.com.

4


FINANCIAL HIGHLIGHTS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
 
Three Months Ended March 31,
Nine Months Ended March 31,
(in thousands, except per share amounts)
2018
 
2017
2018
 
2017
Sales
$
607,936

 
$
528,630

$
1,721,734

 
$
1,493,343

Cost of goods sold
388,475

 
342,365

1,124,736

 
1,015,926

     Gross profit
219,461

 
186,265

596,998

 
477,417

Operating expense
129,151

 
116,939

369,131

 
347,808

Restructuring and asset impairment charges
1,264

 
7,169

6,834

 
44,230

Amortization of intangibles
3,690

 
4,245

11,028

 
12,665

     Operating income
85,356

 
57,912

210,005

 
72,714

Interest expense
7,468

 
7,331

21,848

 
21,475

Other expense, net
647

 
1,626

2,046

 
2,470

Income before income taxes
77,241

 
48,955

186,111

 
48,769

Provision for income taxes
24,130

 
9,301

51,204

 
22,401

Net income
53,111

 
39,654

134,907

 
26,368

Less: Net income attributable to noncontrolling interests
2,245

 
764

3,256

 
1,873

Net income attributable to Kennametal
$
50,866

 
$
38,890

$
131,651

 
$
24,495

PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
 
 
 
Basic earnings per share
$
0.62

 
$
0.48

$
1.62

 
$
0.31

Diluted earnings per share
$
0.61

 
$
0.48

$
1.59

 
$
0.30

Dividends per share
$
0.20

 
$
0.20

$
0.60

 
$
0.60

Basic weighted average shares outstanding
81,793

 
80,398

81,445

 
80,219

Diluted weighted average shares outstanding
83,109

 
81,381

82,670

 
80,965


5


CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
March 31, 2018
 
June 30, 2017
 
 ASSETS
 
 
 
Cash and cash equivalents
$
221,906

 
$
190,629

Accounts receivable, net
410,550

 
380,425

Inventories
537,205

 
487,681

Other current assets
70,926

 
55,166

Total current assets
1,240,587

 
1,113,901

Property, plant and equipment, net
804,954

 
744,388

Goodwill and other intangible assets, net
491,109

 
491,894

Other assets
81,212

 
65,313

Total assets
$
2,617,862

 
$
2,415,496

 
 LIABILITIES
 
 
 
Current maturities of long-term debt and capital leases, including notes payable
$
1,399

 
$
925

Accounts payable
220,205

 
215,722

Other current liabilities
256,186

 
244,831

Total current liabilities
477,790

 
461,478

Long-term debt and capital leases
696,087

 
694,991

Other liabilities
217,831

 
206,374

Total liabilities
1,391,708

 
1,362,843

KENNAMETAL SHAREHOLDERS’ EQUITY
1,187,325

 
1,017,294

NONCONTROLLING INTERESTS
38,829

 
35,359

Total liabilities and equity
$
2,617,862

 
$
2,415,496


SEGMENT DATA (UNAUDITED)
Three Months Ended March 31,
Nine Months Ended March 31,
(in thousands)
2018
 
2017
2018
 
2017
Outside Sales:
 
 
 
 
 
 
Industrial
$
333,012

 
$
289,455

$
942,922

 
$
825,990

Widia
52,217

 
46,297

145,204

 
130,186

Infrastructure
222,707

 
192,878

633,608

 
537,167

Total sales
$
607,936

 
$
528,630

$
1,721,734

 
$
1,493,343

Sales By Geographic Region:
 
 
 
 
 
 
Americas
$
294,189

 
$
261,346

$
832,065

 
$
730,014

EMEA
192,876

 
161,979

534,040

 
460,713

Asia Pacific
120,871

 
105,305

355,629

 
302,616

Total sales
$
607,936

 
$
528,630

$
1,721,734

 
$
1,493,343

Operating Income (Loss):
 
 
 
 
 
 
Industrial
$
53,029

 
$
38,535

$
131,132

 
$
62,138

Widia
1,638

 
606

2,556

 
(7,797
)
Infrastructure
31,767

 
19,770

79,347

 
22,457

Corporate (1)
(1,078
)
 
(999
)
(3,030
)
 
(4,084
)
Total operating income
$
85,356

 
$
57,912

$
210,005

 
$
72,714

(1)  Represents unallocated corporate expenses


6


In addition to reported results under generally accepted accounting principles in the United States of America (GAAP), the following financial highlight tables include, where appropriate, a reconciliation of adjusted results including: gross profit and margin; operating expense; operating expense as a percentage of sales; operating income and margin; ETR; net income attributable to Kennametal shareholders; diluted EPS; Industrial operating income and margin; Widia operating income and margin; Infrastructure operating income and margin; free operating cash flow; EBITDA and margin; and consolidated and segment organic sales growth (which are non-GAAP financial measures), to the most directly comparable GAAP financial measures. For those adjustments that are presented ‘net of tax’, the tax effect of the adjustment can be derived by calculating the difference between the pre-tax and the post-tax adjustments presented. The tax effect on adjustments is calculated by preparing an overall tax calculation including the adjustments and then a tax calculation excluding the adjustments. The difference between these calculations results is the tax impact of the adjustments.
Management believes that investors should have available the same information that management uses to assess operating performance, determine compensation and assess the capital structure of the company. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures utilized by the company may not be comparable to non-GAAP financial measures used by other companies. Reconciliations of non-GAAP financial measures are set forth in the tables below and descriptions of certain non-GAAP financial measures are contained in our current report on Form 8-K filed with the SEC on May 2, 2018.
Reconciliations to the most directly comparable GAAP financial measures for the following forward-looking non-GAAP financial measures for full fiscal year of 2018 are not presented, including but not limited to: adjusted earnings per share, organic sales growth and free operating cash flow. The most comparable GAAP measures are earnings per share, sales growth and net cash flow from operating activities, respectively. Because the non-GAAP financial measures on a forward-looking basis are subject to uncertainty and variability as they are dependent on many factors - including, but not limited to, the effect of foreign currency exchange fluctuations, impacts from potential acquisitions or divestitures, gains or losses on the potential sale of businesses or other assets, restructuring costs, asset impairment charges, losses from early extinguishment of debt, the tax impact of the items above and the impact of tax law changes or other tax matters - reconciliations to the most directly comparable forward-looking GAAP financial measures are not available without unreasonable effort.
THREE MONTHS ENDED MARCH 31, 2018 (UNAUDITED)
 
(in thousands, except percents and per share data)
Sales
Gross profit
Operating expense
Operating income
Effective tax rate
Net income(2)
Diluted EPS
Reported results
$
607,936

$
219,461

$
129,151

$
85,356

31.2
 %
$
50,866

$
0.61

Reported margins
 
36.1
%
21.2
%
14.0
%
 
 
 
Restructuring and related charges
—

694

277

1,681

0.2

1,230

0.01

Tax reform charge(3)
—

—

—

—

(8.3
)
6,382

0.08

Adjusted results
$
607,936

$
220,155

$
129,428

$
87,037

23.1
 %
$
58,478

$
0.70

Adjusted margins
 
36.2
%
21.3
%
14.3
%
 
 
 
(2) Attributable to Kennametal
(3) Additional charge recorded to reflect adjustments to the provisional amounts recorded in the December quarter of fiscal 2018 for the application of a measure of the Tax Cuts and Jobs Act of 2017 requiring a one-time transition tax on previously untaxed accumulated earnings and profits of non-U.S. companies. The toll tax charge is based on a reasonable estimate and is subject to finalization of collecting all information and analyzing the calculation in reasonable detail to complete the accounting.
 
Industrial
Widia
Infrastructure
(in thousands, except percents)
Sales
Operating income
Sales
Operating income
Sales
Operating income
Reported results
$
333,012

$
53,029

$
52,217

$
1,638

$
222,707

$
31,767

Reported operating margin
 
15.9
%
 
3.1
%
 
14.3
%
Restructuring and related charges
—

1,023

—

17

—

641

Adjusted results
$
333,012

$
54,052

$
52,217

$
1,655

$
222,707

$
32,408

Adjusted operating margin
 
16.2
%
 
3.2
%
 
14.6
%

7


THREE MONTHS ENDED MARCH 31, 2017 (UNAUDITED)
 
(in thousands, except percents and per share data)
Sales
Gross profit
Operating expense
Operating income
Effective tax rate
Net income(2)
Diluted EPS
Reported results
$
528,630

$
186,265

$
116,939

$
57,912

19.0
 %
$
38,890

$
0.48

Reported margins
 
35.2
%
22.1
%
11.0
%
 
 
 
Restructuring and related charges
—

1,644

(809
)
9,623

(3.7
)
9,961

0.12

Adjusted results
$
528,630

$
187,909

$
116,130

$
67,535

15.3
 %
$
48,851

$
0.60

Adjusted margins
 
35.5
%
22.0
%
12.8
%
 
 
 
 
Industrial
Widia
Infrastructure
(in thousands, except percents)
Sales
Operating income
Sales
Operating income
Sales
Operating income
Reported results
$
289,455

$
38,535

$
46,297

$
606

$
192,878

$
19,770

Reported operating margin
 
13.3
%
 
1.3
%
 
10.3
%
Restructuring and related charges
—

5,142

—

466

—

3,974

Adjusted results
$
289,455

$
43,677

$
46,297

$
1,072

$
192,878

$
23,744

Adjusted operating margin
 
15.1
%
 
2.3
%
 
12.3
%
NINE MONTHS ENDED MARCH 31, 2018 (UNAUDITED)
 
(in thousands, except percents)
Sales
Operating income
Net income(2)
Diluted EPS
Reported results
$
1,721,734

$
210,005

$
131,651

$
1.59

Reported operating margin
 
12.2
%
 
 
Restructuring and related charges
—

10,048

7,800

0.10

Impact of out of period adjustment to provision for income taxes(4)
—

—

5,297

0.06

Net tax reform charge(5)
—

—

2,496

0.03

Adjusted results
$
1,721,734

$
220,053

$
147,244

$
1.78

Adjusted operating margin
 
12.8
%
 
 
(4) Non-cash charge associated with the out-of-period impact of recording an adjustment to deferred tax charges associated with intra-entity product transfers.
(5) Net tax charge associated with the Tax Cuts and Jobs Act of 2017 (TCJA). TCJA required a one-time transition tax on previously untaxed accumulated earnings and profits of non-U.S. companies. This transition tax of $83 million resulted in an estimated toll charge, which was mostly offset by our U.S. tax carryforwards, which were subject to a full valuation allowance. After the effect of the toll charge and utilization of existing tax attributes, deferred tax assets were remeasured and the valuation allowance was released in the December quarter of fiscal 2018, yielding a net benefit of $4 million in that quarter. An additional $6 million expense was recorded in the third quarter to reflect adjustments to the toll charge. The toll charge of $83 million is based on a reasonable estimate and is subject to finalization of collecting all information and analyzing the calculation in reasonable detail to complete the accounting.
NINE MONTHS ENDED MARCH 31, 2017 (UNAUDITED)
 
(in thousands, except percents)
Sales
Operating income
Net income(2)
Diluted EPS
Reported results
$
1,493,343

$
72,714

$
24,495

$
0.30

Reported operating margin
 
4.9
%
 
 
Restructuring and related charges
—

53,064

51,469

0.63

Australia deferred tax valuation allowance
—

—

1,288

0.02

Adjusted results
$
1,493,343

$
125,778

$
77,252

$
0.95

Adjusted operating margin
 
8.4
%
 
 

8


FREE OPERATING CASH FLOW (UNAUDITED)
 
Three Months Ended March 31,
Nine Months Ended March 31,
 
 
(in thousands)
 
2018
 
2017
2018
 
2017
Net cash flow from operating activities(6)
 
$
113,813

 
$
34,094

$
180,586

 
$
82,793

Purchases of property, plant and equipment
 
(43,087
)
 
(23,522
)
(128,310
)
 
(94,095
)
Proceeds from disposals of property, plant and equipment
 
1,350

 
343

2,196

 
3,852

Free operating cash flow
 
$
72,076

 
$
10,915

$
54,472

 
$
(7,450
)
(6) Amounts for the three and nine months ended March 31, 2017 have been restated to reflect adoption of FASB ASU 2016-09.
EBITDA (UNAUDITED)
 
Three Months Ended March 31,
Nine Months Ended March 31,
 
 
(in thousands)
 
2018
 
2017
2018
 
2017
Net income attributable to Kennametal
 
$
50,866

 
$
38,890

$
131,651

 
$
24,495

Add back:
 
 
 
 
 
 
 
  Interest expense
 
7,468

 
7,331

21,848

 
21,475

  Interest income
 
(1,023
)
 
(306
)
(1,540
)
 
(759
)
  Provision for income taxes
 
24,130

 
9,301

51,204

 
22,401

  Depreciation
 
23,933

 
22,375

69,994

 
68,369

  Amortization of intangibles
 
3,690

 
4,245

11,028

 
12,665

EBITDA
 
$
109,064

 
$
81,836

$
284,185

 
$
148,646

Margin
 
17.9
%
 
15.5
%
16.5
%
 
10.0
%
 
 
 
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
Restructuring and related charges
 
1,681

 
9,623

10,048

 
53,064

Adjusted EBITDA
 
$
110,745

 
$
91,459

$
294,233

 
$
201,710

Adjusted margin
 
18.2
%
 
17.3
%
17.1
%
 
13.5
%
ORGANIC SALES GROWTH (UNAUDITED)
 
 
 
 
Three Months Ended March 31, 2018
 
Industrial
 
Widia
 
Infrastructure
 
Total
Organic sales growth
 
10%
 
9%
 
14%
 
11%
Foreign currency exchange impact
 
8
 
5
 
3
 
6
Business days impact
 
(3)
 
(1)
 
(2)
 
(2)
Divestiture impact
 
—
 
—
 
—
 
—
Acquisition impact
 
—
 
—
 
—
 
—
Sales growth
 
15%
 
13%
 
15%
 
15%
Nine Months Ended March 31, 2018
 
Total
Organic sales growth
 
13%
Foreign currency exchange impact
 
3
Business days impact
 
(1)
Divestiture impact
 
—
Acquisition impact
 
—
Sales growth
 
15%

9