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KENNAMETAL ANNOUNCES EARNINGS FOR JUNE QUARTER AND FISCAL 1993

 LATROBE, Pa., July 21 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) reported today that net income for the fourth quarter ended June 30, 1993, was $7.7 million, or $0.70 per share, as compared with $2.7 million, or $0.25 per share for the same quarter last year.
 Consolidated sales for the June 1993 quarter were $155 million, up 3 percent from $151 million last year.
 Net income for fiscal year 1993 was $20.1 million, or $1.85 per share, up 54 percent from $12.9 million, or $1.20 per share in 1992. The 1993 results include a nonrecurring gain of $1.0 million, or $0.10 per share, in the second quarter. Sales for 1993 were $598 million, up 1 percent from $595 million in 1992.
 Robert L. McGeehan, president and chief executive officer, said that earnings for the June 1993 quarter were favorably affected by an increase in domestic sales of metalworking products and slightly higher production levels in the company's metalworking operations. Worldwide sales of metalworking products were flat with those of the same quarter last year primarily because of unfavorable foreign currency translation effects of the stronger U.S. dollar and sales volume declines in Europe.
 In the June 1993 quarter, sales of metalcutting inserts and toolholding devices in the United States increased 4 percent from last year with price increases accounting for approximately half of the rise. Total sales of industrial supply products increased four percent as a result of increased sales through full service supply programs and mail order catalogs. Excluding foreign currency translation effects, international metalworking sales decreased 4 percent primarily because of lower sales volume in Europe. Sales in Canada increased 5 percent while sales in Asia-Pacific markets improved slightly.
 Sales of mining and construction tools for the June 1993 quarter increased 13 percent from last year as a result of strong worldwide demand for highway construction tools and increased sales of mining tools.
 In reviewing the financial results for the June 1993 quarter, McGeehan noted that the gross profit margin was 43 percent up from 39 percent last year. The gross profit margin benefitted from a favorable sales mix and a reduction in certain production-related costs. In addition, the effective tax rate was increased to an annualized rate of 41.1 percent compared to an annualized rate of 38.5 percent utilized in the 1993 third quarter.
 In looking forward McGeehan expects higher sales of metalworking products in fiscal 1994. In addition, sales in the U.S. should continue to benefit from full service supply programs and catalog sales. Mining and Construction tool sales should continue to grow. McGeehan expects sales for the first quarter of fiscal 1994 to be slightly ahead of last year's level.
 KENNAMETAL INC.
 FINANCIAL HIGHLIGHTS
 Consolidated financial highlights for Kennametal Inc. (NYSE:KMT) for the quarter and year ended June 30, 1993 and 1992 are shown in the following tables (in thousands, except per share amounts).
 Quarter Year
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 Net sales $155,278 $151,173 $598,496 $594,533
 Cost of goods sold 88,048 93,034 352,773 362,967
 Research & development
 expense 3,459 3,594 14,714 13,656
 Selling & marketing
 expense 37,046 34,461 144,850 137,494
 General & adminis-
 trative expense 9,731 11,792 41,348 45,842
 Interest expense 2,311 2,209 9,549 10,083
 Amortization of
 intangibles 819 829 3,425 3,479
 Patent litigation -- -- (1,738) --
 Other (income) expense 6 (125) (519) 40
 Provisions for
 income taxes 6,200 2,700 14,000 8,100
 Net income $ 7,658 $ 2,679 $ 20,094 $ 12,872
 Average shares
 outstanding 10,915 10,782 10,856 10,726
 Earnings per share $ .70 $ 0.25 $ 1.85 $ 1.20
 Dividends per share $ .29 $ 0.29 $ 1.16 $ 1.16
 Quarter Year
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 Sales by Product Class:
 Metalworking $122,957 $121,783 $478,137 $482,058
 Mining & construction 27,095 23,926 99,614 89,257
 Metallurgical 5,226 5,401 20,745 19,852
 Other -- 63 -- 3,366
 Sales by Geographic Area:
 Within the U.S. $115,551 $108,759 $438,910 $434,195
 Export & foreign 39,727 42,414 159,586 160,338
 /delval/
 -0- 7/21/93
 /CONTACT: Michael J. Mussog of Kennametal, 412-539-4617/
 (KMT)


CO: Kennametal Inc. ST: Pennsylvania IN: MNG SU: ERN

DM -- PG004 -- 3764 07/21/93 08:48 EDT
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Date:Jul 21, 1993
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