Kennametal

Last updated
Kennametal Inc.
Company typePublic
NYSE:  KMT
BSE:  505890
S&P 600 component
Industry Metals
Founded1938
Headquarters Pittsburgh, Pennsylvania
Key people
Sanjay Chowbey, President and CEO [1]
Productsaggregates, metalworking, abrasive flow products, cutting tools, metallurgy, mining equipment, woodworking, fluid handling
RevenueIncrease2.svg$2.4 billion USD
Number of employees
approximately 10,000 worldwide
Website www.kennametal.com

Kennametal, Inc. is a manufacturer of high-performance cutting tools and engineered components used in the aerospace, defense, transportation and oil and gas drilling industries. Its customer base is global. [2]

Contents

General office of predecessor firm Vanadium Alloys Steel; large lumps of coal in foreground Former office of Vanadium Alloys Steel Company.jpg
General office of predecessor firm Vanadium Alloys Steel; large lumps of coal in foreground

History

Kennametal was founded in 1938 by Philip M. McKenna in the Latrobe, Pennsylvania area. [3] [4] The company evolved from Vanadium Alloys Steel Company (VASCO), founded in 1910 by the McKenna family with its headquarters in Latrobe, Pennsylvania. While research director of VASCO, metallurgist Philip McKenna developed and received a patent for a tungsten-titanium carbide composition. McKenna formed Kennametal, Inc. for the purpose of marketing this alloy. [5]

The company's original flagship product, known as "Kennametal", was introduced in the late 1930s. It was described as "much harder than the hardest tool steel," which enabled high-rate steel cutting not possible previously. [6] In July 1940, Kennametal of Canada Ltd. was organized for the purpose of "manufacturing Kennametal, the new steel cutting carbide, for Canada and British dominions." [7] In November 1940, United States Steel Export Company reached an agreement to sell Kennametal tools, tool blanks, drawing dies and other Kennametal products in foreign markets. [8]

During World War II, more than 50% of the artillery shells produced in the United States were machined with the Kennametal product. [9] During this period the company developed a new type of anti-tank projectile made of tungsten with a hard carbide core. [10]

The company has expanded through acquisitions, [11] [12] including the purchase of Widia Group (2002, 188 million Euros) [13] Extrude Hone Corp. (2005, $137 million) [14] and Allegheny Technologies' tungsten materials unit (2013, $605 million). [15]

Production

Kennametal products: [16]

Brands

WIDIA GTD Tap 1/16-27 NPTF 4F Taper Pipe Tap Example of GTD Tap.jpg
WIDIA GTD Tap 1/16-27 NPTF 4F Taper Pipe Tap

In 2009, Kennametal announced that they migrated all its current brands into two distinct portfolios: WIDIA Products Group and Kennametal Products Group. [17]

WIDIA Products Group

This group markets several brands: WIDIA, Hanita, and WIDIA GTD. [18] The GTD stands for Greenfield Tap & Die and was initially formed in 1912. [19]

Kennametal Products Group

Kennametal Products Group provides metalworking tools, metal powders, and wear-resistant coatings such as Conforma-Clad and Stellite. [20]

Financial Results

For fiscal years 2020 through 2024, results ranged from a loss of $5.66 million to net income of $118.46 million. With respect to the fiscal year 2020 loss, the company said: "The effects of COVID-19 were felt in every region during the quarter and created a challenging environment." [21] Profitability improved in the following fiscal year.

In September 2024, Moody's Ratings affirmed Kennametal's Baa3 credit rating, and opined that the outlook for the rating was "stable." [22]

Net Income (Loss)
Year$ millions
2020 [23] ($ 5.66)
2021 [23] $ 54.43
2022 [23] $ 114.62
2023 [23] $ 118.46
2024 [23] $ 109.32

See also

Related Research Articles

<span class="mw-page-title-main">Tungsten</span> Chemical element with atomic number 74 (W)

Tungsten is a chemical element; it has symbol W and atomic number 74. It is a rare metal found naturally on Earth almost exclusively as compounds with other elements. It was identified as a distinct element in 1781 and first isolated as a metal in 1783. Its important ores include scheelite and wolframite, the latter lending the element its alternative name.

Stellite alloys are a range of cobalt-chromium alloys designed for wear resistance. "Stellite" is also a registered trademark of Kennametal Inc. and is used in association with cobalt-chromium alloys.

<span class="mw-page-title-main">Sandvik</span> Swedish engineering company

Sandvik AB is a Swedish multinational engineering company specializing in products and services for mining, rock excavation, rock drilling, rock processing, metal cutting and machining. The company was founded in Gävleborg County, Sweden, in 1862. In 2023, it had approximately 41,000 employees and a revenue of 127 billion SEK, with sales in around 170 countries.

<span class="mw-page-title-main">Tool steel</span> Any of various steels that are particularly well-suited to be made into tools and tooling

Tool steel is any of various carbon steels and alloy steels that are particularly well-suited to be made into tools and tooling, including cutting tools, dies, hand tools, knives, and others. Their suitability comes from their distinctive hardness, resistance to abrasion and deformation, and their ability to hold a cutting edge at elevated temperatures. As a result, tool steels are suited for use in the shaping of other materials, as for example in cutting, machining, stamping, or forging.

<span class="mw-page-title-main">High-speed steel</span> Subset of tool steels

High-speed steel is a subset of tool steels, commonly used as cutting tool material.

<span class="mw-page-title-main">Tungsten carbide</span> Hard, dense and stiff chemical compound

Tungsten carbide is a chemical compound containing equal parts of tungsten and carbon atoms. In its most basic form, tungsten carbide is a fine gray powder, but it can be pressed and formed into shapes through sintering for use in industrial machinery,engineering facility,mold industry ,cutting tools, chisels, abrasives, armor-piercing bullets and jewelry.

A cermet is a composite material composed of ceramic and metal materials.

<span class="mw-page-title-main">Titanium carbide</span> Chemical compound

Titanium carbide, TiC, is an extremely hard refractory ceramic material, similar to tungsten carbide. It has the appearance of black powder with the sodium chloride crystal structure.

<span class="mw-page-title-main">Tool bit</span> Non-rotary cutting tool used in machining

In machining, a tool bit is a non-rotary cutting tool used in metal lathes, shapers, and planers. Such cutters are also often referred to by the set-phrase name of single-point cutting tool, as distinguished from other cutting tools such as a saw or water jet cutter. The cutting edge is ground to suit a particular machining operation and may be resharpened or reshaped as needed. The ground tool bit is held rigidly by a tool holder while it is cutting.

<span class="mw-page-title-main">Water jet cutter</span> Industrial tool

A water jet cutter, also known as a water jet or waterjet, is an industrial tool capable of cutting a wide variety of materials using an extremely high-pressure jet of water, or a mixture of water and an abrasive substance. The term abrasive jet refers specifically to the use of a mixture of water and an abrasive to cut hard materials such as metal, stone or glass, while the terms pure waterjet and water-only cutting refer to waterjet cutting without the use of added abrasives, often used for softer materials such as wood or rubber.

<span class="mw-page-title-main">End mill</span> Milling cutter designed to cut axially

An end mill is a type of milling cutter, a cutting tool used in industrial milling applications. They can have several end configurations: round (ball), tapered, or straight are a few popular types. They are most commonly used in "milling machines" that move a piece of material against the end mill to remove chips of the material to create a desired size or shape. It is distinguished from the drill bit in its application, geometry, and manufacture. While a drill bit can only cut in the axial direction, most milling bits can cut in the radial direction. Not all mills can cut axially; those designed to cut axially are known as end mills.

<span class="mw-page-title-main">Cold saw</span> Type of circular saw

A cold saw is a circular saw designed to cut metal which uses a toothed blade to transfer the heat generated by cutting to the chips created by the saw blade, allowing both the blade and material being cut to remain cool. This is in contrast to an abrasive saw, which abrades the metal and generates a great deal of heat absorbed by the material being cut and saw blade.

<span class="mw-page-title-main">Haynes International</span> Producer of corrosion-resistant and high-temperature alloys

Haynes International, Inc., a subsidiary of Acerinox headquartered in Kokomo, Indiana, is one of the largest producers of corrosion-resistant and high-temperature alloys. In addition to Kokomo, Haynes has manufacturing facilities in Arcadia, Louisiana, Laporte, Indiana, and Mountain Home, North Carolina. The Kokomo facility specializes in flat products, the Arcadia facility in tubular products, and the Mountain Home facility in wire products. In fiscal year 2018, the company's revenues were derived from the aerospace (52.1%), chemical processing (18.2%), industrial gas turbine (12.0%) and other (12.3%) industries. The company's alloys are primarily marketed under the Hastelloy and the Haynes brands. They are based on nickel, but also include cobalt, chromium, molybdenum, tungsten, iron, silicon, manganese, carbon, aluminum, and/or titanium.

<span class="mw-page-title-main">Cemented carbide</span> Type of composite material

Cemented carbides are a class of hard materials used extensively for cutting tools, as well as in other industrial applications. It consists of fine particles of carbide cemented into a composite by a binder metal. Cemented carbides commonly use tungsten carbide (WC), titanium carbide (TiC), or tantalum carbide (TaC) as the aggregate. Mentions of "carbide" or "tungsten carbide" in industrial contexts usually refer to these cemented composites.

<span class="mw-page-title-main">American National Carbide</span>

American National Carbide was a privately held company that manufactured tungsten carbide products and was headquartered in Tomball, Texas, which is just northwest of Houston. Also known as "ANC," the company specialized in the production of finished carbide tools for metalworking, rock drilling, and wear applications and was one of a few companies worldwide that was able to recycle tungsten carbide scrap into raw material. ANC, a member of the United States Cutting Tool Institute, was founded in 1970 and sold its products worldwide.

Moody's, previously known as Moody's Analytics, is a subsidiary of Moody's Corporation established in 2007 to focus on non-rating activities, separate from Moody's Investors Service. It provides economic research regarding risk, performance and financial modeling, as well as consulting, training and software services. Moody's is composed of divisions such as Moody's KMV, Moody's Economy.com, Moody's Wall Street Analytics, the Institute of Risk Standards and Qualifications, and Canadian Securities Institute Global Education Inc.

<span class="mw-page-title-main">Ceratizit</span>

The Ceratizit Group is a joint-stock company (S.A.) and a business area of the Plansee Group, based in Mamer, Luxembourg. Ceratizit is primarily active in the cemented carbide industry. They manufacture cutting tools and products for wear protection, including solid carbide tools and inserts, hard material rods, and wear parts as well as products for wood and stone working. The company is the fourth-largest carbide manufacturer globally and a world leader in industrial applications such as wear protection, wood, and stone working.

Crucible Industries, commonly known as Crucible, is an American company which develops and manufactures specialty steels, and is the sole producer of a line of sintered steels known as Crucible Particle Metallurgy (CPM) steels. The company produces high speed, stainless and tool steels for the automotive, cutlery, aerospace, and machine tool industries.

Dormer Pramet is a global manufacturer and supplier of cutting tools for the engineering industry, including drilling, milling, threading and turning tools. Its origins date back to 1913, making it one of the world's oldest specialist manufacturers of engineers cutting tools.

References

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  2. Trombetta, Peter (11 September 2024). "Rating Action: Moody's Ratings affirms Kennametal's Baa3 senior unsecured rating; outlook is stable". Moody's Ratings. Retrieved 12 November 2024.
  3. "Kennametal Inc: Company and People". Barron's. Retrieved 11 November 2024.
  4. "About Us". www.kennametal.com. Archived from the original on 2015-12-15.
  5. Derdak, Thomas. "Kennametal, Inc". Encyclopedia.com. Retrieved 10 November 2024.
  6. "Kennametal Being Used in Many Ways". Pittsburgh Post-Gazette. 4 September 1946. Retrieved 11 November 2024.
  7. "Kennametal of Canada Organized with Offices in Hamilton, Ontario". Toronto Star at Newspapers.com. 2 July 1940. Retrieved 11 November 2024.
  8. "Steel Export Unit to Sell Kennametal". Pittsburgh Sun-Telegraph via Newspapers.com. 12 November 1940. Retrieved 11 November 2024.
  9. "Research and Engineering Pace Company". Latrobe Bulletin via Newspapers.com. 15 December 1952. Retrieved 12 November 2024.
  10. "Plant Expands at Latrobe". Pittsburgh Post-Gazette via Newspapers.com. 14 May 1945. Retrieved 11 November 2024.
  11. "Kennametal - M&A Summary and Business Overview". Mergr. Retrieved 29 November 2024.
  12. "List of 6 Acquisitions by Kennametal". Tracxn. Tracxn Technologies Ltd. Retrieved 29 November 2024.
  13. "Kennametal Announces Completion of Widia Acquisition | Kennametal Inc". investors.kennametal.com. Retrieved 2022-04-16.
  14. "Kennametal, Inc. Steels Itself for M&A". The Mddle Market. Mergers and Acquisitions Report and SourceMedia, Inc. Retrieved 29 November 2024.
  15. Boselovic, Len (16 September 2013). "Kennametal agrees to acquire Allegheny Technologies unit for $605 million". Pittsburgh Post-Gazette. Retrieved 29 November 2024.
  16. "Products". www.kennametal.com. Archived from the original on 2015-11-21. Retrieved 2015-11-21.
  17. "Kennametal Launches WIDIA Products Group". www.kennametal.com. Retrieved 2022-04-16.
  18. "Services". www.widia.com. Retrieved 2022-04-16.
  19. "WIDIA GTD". www.widia.com. Retrieved 2022-04-16.
  20. "Products". www.kennametal.com. Retrieved 2022-04-16.
  21. "Kennametal Announces Fourth Quarter and Fiscal Year 2020 Results". Kennametal corporate web site. Retrieved 11 November 2024.
  22. "Moody's Investors Service affirms Kennametal at "Baa3" (LT- local currency credit rating); outlook stable". CBonds. Retrieved 11 November 2024.
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