Kennametal
 | |
| Company type | Public |
|---|---|
| NYSE: KMT Template:BSE S&P 600 component | |
| Industry | Metals |
| Founded | 1938 |
| Headquarters | Pittsburgh, Pennsylvania |
Key people | Sanjay Chowbey, President and CEO |
| Products | aggregates, metalworking, abrasive flow products, cutting tools, metallurgy, mining equipment, woodworking, fluid handling |
| Revenue |  $2.4 billion USD |
Number of employees | approximately 10,000 worldwide |
| Website | www.kennametal.com |
Kennametal, Inc. operates as a worldwide producer specializing in advanced cutting tools and engineered components, catering to sectors such as aerospace, defense, transportation, and oil and gas drilling.
History
The company traces its origins back to 1938 when entrepreneur Philip M. McKenna founded it near Latrobe, Pennsylvania. Kennametal emerged from the earlier Vanadium Alloys Steel Company (VASCO), which the McKenna family had established in 1910. As VASCO’s research director, McKenna developed a tungsten-titanium carbide alloy and created Kennametal to commercialize this groundbreaking material.
Introduced in the late 1930s, the original "Kennametal" product was notably harder than conventional tool steels, allowing for accelerated steel cutting speeds. By 1940, the company had extended its reach internationally by establishing Kennametal of Canada Ltd. and collaborating with United States Steel Export Company to distribute its products worldwide.
During the Second World War, more than half of the artillery shells manufactured in the U.S. were produced using Kennametal’s materials. Additionally, the company engineered tungsten-based anti-tank projectiles featuring carbide cores throughout this era.
Kennametal has consistently expanded its market presence and diversified its offerings through strategic acquisitions. Noteworthy purchases include the Widia Group in 2002 for €188 million, Extrude Hone Corp. in 2005 at $137 million, and Allegheny Technologies' tungsten materials division in 2013 for $605 million.
Production
Kennametal’s product range includes:
- Aerospace parts such as blades, disks, skins, fuel control systems, and landing gear assemblies
- Agricultural synthetic fertilizers
- Automotive components including camshafts, crankshafts, cylinder heads, rotors, calipers, and differentials
- Materials for residential construction like roofing products and abrasives
- Equipment used in road construction including asphalt tools, soil stabilization devices, and tunneling machinery
- Tools designed for woodworking applications
- Products for machining industries:
- Machine tools encompassing CNC machining centers, CNC turning centers (lathes), and automatic screw machines
- Tooling solutions such as indexable toolholders, collets, fixtures, and cutting tools supplied through the WIDIA Products Group (including inserts, tool bits, milling cutters, taps and dies, and metal saw cutters)
- Mining machinery and equipment
- Abrasive materials and flow control systems tailored for the oil sector
- Power generation equipment utilized in electric power plants
- Fluids employed within the paper manufacturing industry
- Wheels and axles designed for rail transportation
- Customized engineering services tailored to client needs
Brands
In 2009, Kennametal streamlined its brand structure into two primary divisions: the WIDIA Products Group and the Kennametal Products Group.
WIDIA Products Group
This division manages brands such as WIDIA, Hanita, and WIDIA GTD. Established in 1912, GTD (Greenfield Tap & Die) remains a significant name in the tooling industry.
Kennametal Products Group
This segment specializes in metalworking tools, metal powders, and durable coatings including Conforma-Clad and Stellite.
Financial Results and Credit Rating
Kennametal’s fiscal year concludes on June 30. Between 2020 and 2024, net income fluctuated from a loss of $5.66 million in 2020—largely due to COVID-19 related challenges—to a profit of $118.46 million in 2023. Following the downturn in 2020, the company regained profitability and demonstrated consistent growth.
In September 2024, Moody's reaffirmed Kennametal’s Baa3 credit rating with a stable outlook, highlighting the company’s robust financial health and strategic stability.
| Year | $ millions |
|---|---|
| 2020 | ($5.66) |
| 2021 | $54.43 |
| 2022 | $114.62 |
| 2023 | $118.46 |
| 2024 | $109.32 |
See also