Kennametal Inc. (NYSE:KMT) Q4 2016 Earnings Conference Call - Final Transcript

Aug 02, 2016 • 08:30 am ET


Kennametal Inc. (NYSE:KMT) Q4 2016 Earnings Conference Call - Final Transcript


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Good day and welcome to the Kennametal's Fourth Quarter and Fiscal Year 2016 Financial Results Conference Call and Webcast. All participants will be in listen-only mode. Please note today's event is being recorded.

I would now like to turn the conference over to Kelly Boyer, Vice President, Investor Relations. Please go ahead.

Kelly Boyer

Thank you, Rocco. Welcome, everyone, and thank you for joining us to review Kennametal's fourth quarter and fiscal 2016 year-end results. We issued our quarterly earnings press release yesterday evening and it's posted on our website at This call is being broadcast live on that website and a recording of the call will be available for replay through September 2.

I'm Kelly Boyer, Vice President of Investor Relations. Joining me on the call today are Ron DeFeo, President and Chief Executive Officer; Jan Kees van Gaalen, Vice President and Chief Financial Officer; Marti Fusco, Vice President, Finance and Corporate Controller; Chuck Byrnes, President, Industrial Business Segment; and Pete Dragich, President, Infrastructure Business Segment.

Ron and Jan Kees will discuss the June quarter and total year operating and financial performance as well as our outlook for fiscal year 2017 and we'll be referring to the slide deck posted on our website. After their prepared remarks, we will be happy to answer your questions.

At this time, please direct your attention to our forward-looking disclosure statement. Today's discussion contains comments that constitute forward-looking statements and involve a number of assumptions, risks and uncertainties that could cause the company's actual results to differ materially from those expressed in or implied by those statements. These risk factors and uncertainties are detailed in Kennametal's SEC filings. Also, we will be discussing non-GAAP financial measures on the call today. Reconciliations to GAAP financial measures that we believe are most directly comparable can be found on our Form 8-K on our website.

With that, I would now like to turn the call over to Ron.

Ronald M. DeFeo

Thank you, Kelly, and hello, everyone, and thank you for your interest in Kennametal. I'm going to begin with some overview comments which are on page three of the presentation. Jan Kees is going to discuss the specific financial results and then I'll provide a summary of our outlook and strategy before taking your questions.

The management team is here today to support me on those questions as Kelly noted. With the management team we now have in place, we've confirmed substantial opportunities to improve our company, despite, quite frankly, the challenging times that we're operating in. Simply stated, we've not grown and we have costs that are too high. Both of these issues are being addressed.

To grow we need to improve our commercial acumen and our sales execution. We rely too heavily on products alone. We have great products and we do have great brands. We need to add great service, pricing, availability, a balanced channel strategy and better sales execution to our mix. We're making progress in these areas today with more intensity than ever but this