Kennametal
June 29, 2011 – 3:55 pm
Business Profile
Kennametal is a global company that provides engineered components, tooling, and materials. These products are used in various production processes. The company offers several advanced tools, technical services and tooling systems to its customers. Kennametal’s engineers and scientists use various complex materials science and engineering technologies in high-speed steels, tungsten carbides, industrial diamonds, ceramics and other materials to produce various products that have optimum resistance to heat, corrosion, impact and pressure and used in particular application. MSSG (Metalworking Solutions and Services Group) and AMSG (Advanced Materials Solutions Group) are core businesses of the company. Manufacturing process and customers all around the world uses its services and products.
The company’s end users include manufacturers, suppliers and metalworking in various industries such as automotive, aerospace, machine tool, heavy and light machinery industries, highway construction, oil and gas, coal mining industries. The company also markets and manufactures various toolholding systems, toolholders and cutting tools by fabricating and machining steel bars and various other valuable metal alloys.
The company was founded in 1938 and has headquartered in Latrobe, Pennsylvania, USA. The company has more than 14,000 employees all over the world. The company operates in over 60 countries. An annual sale of the company is approximately $2.4 billion.
The company has listed on New York Stock Exchange. The Gross profit of the company is increased in 2007, $9.4 million to $841.6 million from $832.2 million in 2006. In 2007 sales of the company’s products increased 2.4 percent to $2,385.5 million versus $2,329.6 million in 2006.
Recent Acquisitions
In May 2007, the Company acquired the remaining stocks for ownership Spanish affiliate, KENCI, S.A. Also In May 2007, Kennametal acquired Purity Metal Holdings, Inc. and International Specialty Alloys, which is a subsidiary of Purity Metal Holdings. In January 2007, Kennametal acquired Federal Signal’s cutting tool businesses that consist of ClappDiCO Corporation, Manchester Tool Company and On Time Machine, Inc. In 2006 company divested the Disston Company (South Deerfield Industrial, Inc) to Cal SDI. In 2006 company acquired Camco Cutting Tools. In 2006 company also acquired the Sintec Group.
BUSINESS SEGMENT
Previously company had four business units such as MSSG (Metalworking Solutions & Services Group), AMSG (Advanced Materials Solutions Group), J & L (J&L Industrial Supply ) and FSS ( Full Service Supply). In 2006 and 2005, company divested FSS and J&L segments, respectively.
METALWORKING SOLUTIONS & SERVICES GROUP
MSSG segment provides tooling systems and metalcutting tools to various manufacturing companies in all over the world. The metalcutting operations consists, boring, , turning, threading , milling, grooving and drilling. MSSG’s tooling systems includes cutting tool and steel toolholder like drill and an insert machine, that made from high-speed steel, cemented tungsten carbides, or any hard materials. The company also provide solutions for metalcutting needs of customers through special engineering services that improving competitiveness. MSSG’s engineering services consist of various engineers for field sales that identifying products to fulfill customer needs.
The toolholder provides turning power and normally placed in a machine while working on metal. The toolholder is rapidly rotating during metalworking, and the inserted cutting tool contacts the toolholder, it
shapes or cuts the workpiece.
The company has various customers from industries that shape and cut metal parts and also serves various industries like automobiles manufacturers, aerospace components, trucks, farm equipment, , railroad, marine and power generation equipment, oil and gas processing and drilling equipment , light and heavy machinery, factory equipment, metal components, and maintenance operations. The company delivers products through sales force on direct field, integrated supply programs, distribution and e-business.
ADVANCED MATERIALS SOLUTIONS GROUP
AMSG segment provides sale and production of various products made by cemented tungsten carbide that used in highway construction mining, and various engineered applications that requirs corrosion and wear resistance. Apart from this company also market and manufacture engineered components that have cladding technology. These engineered products includes, extruder barrels that are used by various plastics manufacturers and radial bearings that used for drilling applications for gas and oil. The company also provides metallurgical powders and component design services that are application-specific and on-site application support services. The company also provides process technology, engineered component and materials that help in component deburring, producing and polishing radii. AMSG’s construction and mining tools are made from steel parts and then tipped with cemented carbide.
J&L INDUSTRIAL SUPPLY
In 2006, company divested J&L. It provided metalworking related products and technical and supply chain-related services to manufacturers in the U.S. and UK. J&L services and markets products through catalogs for annual mail-order, monthly sales flyers, the Internet, telemarketing and field sales. J&L marketed various metalcutting tools, drills, abrasives, accessories for machine tool, measuring tools for precision, hand tools, gages and other products that used in metalcutting.
FULL SERVICE SUPPLY
In 2005, Company divested FSS. Full Service Supply provided metalworking and related products to manufacturers in Canada and the U.S. FSS also offered integrated programs for supply that offered inventory management systems and timely availability and programs for cost savings.