Toolmaker Kennametal Inc. (IW500/318) reported a Q4 2015 loss of $66.5 million, capping a fiscal year in which it posted revenues of posted revenues of $2.1 billion and losses of $226 million. While the loss was lower that analysts forecast, it was the second consecutive year of losses for the Pittsburgh-area firm, which now plans to cut 1,000 jobs and increase cost-cutting “substantially.”
Kennametal reportedly has 12,700 workers worldwide. Reports indicate that about 600 of the 1,000 job cuts will be achieve by layoffs. About 400 employees have accepted voluntary separations since the company initiated its cost-cutting efforts this year.
New orders for cutting tools have been in decline more than a year, as the buyers (machine shops and other manufacturers) have managed their own declining orders for machined parts, mainly stemming from reduced demand in energy, mining, heavy equipment, and construction sectors.