Segment Data

3 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATA

Our reportable operating segments have been determined in accordance with the our internal management structure, which is organized based on operating activities, the manner in which we organize segments for allocating resources, making operating decisions and assessing performance and the availability of separate financial results. We do not allocate certain corporate expenses related to executive retirement plans, our Board of Directors, strategic initiatives, and certain other costs and report them in Corporate. Our former segments, Industrial and Widia, were combined into one Metal Cutting segment as of July 1, 2020, while Infrastructure remains unchanged. Segment results have been retrospectively restated to reflect the change in reportable segments. Our reportable operating segments do not represent the aggregation of two or more operating segments.

METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy and transportation. The products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications. Metal Cutting markets its products under the Kennametal®, WIDIA®, WIDIA Hanita® and WIDIA GTD® brands through its direct sales force, a network of independent and national distributors, integrated supplier channels and via the Internet. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support.

INFRASTRUCTURE Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, primarily for the energy, earthworks and general engineering end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide powders for the oil and gas, aerospace and process industries; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as through distributors.

Our sales and operating (loss) income by segment are as follows:

	Three Months Ended September 30,
(in thousands)	2020		2019
Sales:
Metal Cutting	$	247,876	$	324,085
Infrastructure	152,429		194,003
Total sales	$	400,305	$	518,088
Operating (loss) income:
Metal Cutting	$	(23,626)	$	19,306
Infrastructure	7,268		(2,690)
Corporate	(820)		(240)
Total operating (loss) income	(17,178)		16,376
Interest expense	10,578		7,881
Other income, net	(4,019)		(2,681)
(Loss) income from continuing operations before income taxes	$	(23,737)	$	11,176

The following table presents Kennametal's revenue disaggregated by geography:

	Three Months Ended
	September 30, 2020			September 30, 2019
(in thousands)	Metal Cutting	Infrastructure	Total Kennametal	Metal Cutting	Infrastructure	Total Kennametal
Americas	39%	55%	45%	42%	63%	50%
EMEA	37	21	31	37	18	30
Asia Pacific	24	24	24	21	19	20

The following tables presents Kennametal's revenue disaggregated by end market:

	Three Months Ended September 30, 2020
(in thousands)	Metal Cutting	Infrastructure	Total Kennametal
General engineering	54%	34%	46%
Transportation	29	—	18
Aerospace	9	—	5
Energy	8	25	15
Earthworks	—	41	16

	Three Months Ended September 30, 2019
(in thousands)	Metal Cutting	Infrastructure	Total Kennametal
General engineering	52%	34%	45%
Transportation	28	—	18
Aerospace	12	—	7
Energy	8	29	16
Earthworks	—	37	14