Kennametal Inc. (NYSE:KMT PRI) Q2 2017 Earnings Conference Call Transcript
Feb 02, 2017 • 08:30 am ET
Good morning. I would like to welcome everyone to Kennametal's Second Quarter of Fiscal Year 2017 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Please note, this event is being recorded.
I would like to turn the conference over to Kelly Boyer, VP of IR. Please go ahead.
Thank you, Denise. Welcome everyone and thank you for joining us to review Kennametal's second quarter fiscal year 2017 results. We issued our quarterly earnings press release yesterday evening and it is posted on our website.
I'm Kelly Boyer, VP of IR. Joining me on the call today are Ron DeFeo, President and CEO; Jan Kees van Gaalen, VP and CFO; Chuck Byrnes, President - Industrial Business Segment; Pete Dragich, President - Infrastructure Business Segment; and Marty Fusco, VP of Finance and Corporate Controller. Ron and Jan Kees will discuss the December quarter operating and financial performance as well as our outlook for our fiscal year 2017, and we will be referring to the slide deck posted on our website. After their prepared remarks we will be happy to answer your questions.
(Forward-Looking Cautionary Statements)
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 at the back of the slide deck and on our Form 8-K on our website.
With that, I would now like to turn the call over to Ron.
Thank you, Kelly and happy belated New Year celebration to everyone and Chinese New Year to some. Thank you for your interest in Kennametal today. Let me begin on page two of the slides that were posted on our website.
Our second quarter of fiscal year 2017 shows improving results. Overall, we posted year-over-year total company organic sales growth of 2% for the quarter and an improving operating margins in all of our segments. That organic sales growth was the first quarterly consolidated organic growth in over two full years. We're on track with our various cost reduction and growth initiatives and it is those initiatives that are driving our performance. The reported GAAP EPS for the quarter was $0.09 a share versus a loss per share of $2.12 in Q2 last year.
Included in the quarter is $12 million of pre-tax restructuring charges, mostly related to the ongoing reductions in force announced in mid-calendar 2016. Adjusted earnings per share for the quarter increased by 50% to $0.24 versus $0.16 in Q2 of fiscal year 2016.
This quarter's results show improvement in a number of areas including organic sales. Let me turn to slide three to discuss that a little bit more. For those of you that attended or viewed the webcast of our Investor Day in November, this graph will look familiar. Here, however, we have added quarterly numbers as well as updating the monthly numbers.
At the time of our Investor Day, we reported