Kennametal Provides Update on Arkansas Facility Damaged by Tornado

Rhea-AI Summary

Kennametal has resumed operations at its Rogers, Arkansas facility after a tornado on May 26 caused significant damage and a temporary shutdown. The facility, which supports Kennametal's Infrastructure segment and produces engineered carbide wear components, was closed during the Memorial Day weekend, ensuring no injuries occurred. The company continues to assess the financial impact and is coordinating with its insurance provider. The swift resumption of operations was attributed to the teamwork and efforts of the local team and support across the organization.

With a workforce of 8,700 employees and operations in nearly 100 countries, Kennametal reported $2.1 billion in revenues for fiscal 2023. The Rogers facility is important for the company's Energy, General Engineering, Earthworks, and Metal Cutting segments.

Positive

• Operations at Rogers facility resumed promptly, showing strong teamwork and organizational support.
• No injuries reported during the tornado incident.
• Facility produces key components for high-demand segments: Energy, General Engineering, Earthworks, and Metal Cutting.
• Company's fiscal 2023 revenue reported at $2.1 billion, indicating strong financial health.
• Resumption of operations suggests efficient damage control and risk management strategies.

Negative

• Financial impact of the tornado damage is still under assessment, indicating potential future financial uncertainty.
• Dependence on insurance claims might imply significant damage costs, potentially affecting future profitability.
• Temporary shutdown of the facility might have caused delays in production and fulfillment for critical segments.

PITTSBURGH, June 11, 2024 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) ("the Company") announced today that it has resumed operations at its facility in Rogers, AR, following a previous shutdown due to damage from a tornado on May 26.

"The restart of our Rogers facility is a testament to the great teamwork of our local team and the tremendous support and coordination of expert resources across the entire organization," said Sanjay Chowbey, President and CEO of Kennametal Inc. "Our team worked around the clock to ensure operations could resume safely and we continue to take important steps forward every day to meet customers' expectations."

The Company continues to assess the financial effects of the storm and is working with its insurance carrier.

As previously announced, the facility was shut down for the Memorial Day weekend when the tornado struck, and no one was injured. The Rogers plant supports the Company's Infrastructure segment and produces engineered carbide wear components primarily serving the Energy, General Engineering and Earthworks end markets. The facility also produces rods used in the manufacturing of certain round tools for the Company's Metal Cutting segment.

About Kennametal

With over 80 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace and defense, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 8,700 employees are helping customers in nearly 100 countries stay competitive. Kennametal generated $2.1 billion in revenues in fiscal 2023. Learn more at www.kennametal.com. Follow @Kennametal: Instagram, Facebook, LinkedIn and YouTube.

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SOURCE Kennametal Inc.

FAQ

What happened to Kennametal's Rogers facility?

Kennametal's Rogers facility was damaged by a tornado on May 26, causing a temporary shutdown.

When did Kennametal resume operations at the Rogers facility?

Kennametal resumed operations at the Rogers facility on June 11, 2024.

What does the Rogers facility produce?

The Rogers facility produces engineered carbide wear components for the Energy, General Engineering, and Earthworks markets, as well as rods for the Metal Cutting segment.

How did Kennametal handle the tornado damage at the Rogers facility?

Kennametal's local team, with support from the entire organization, worked around the clock to safely resume operations while assessing the financial impact and coordinating with their insurance provider.

What is Kennametal's fiscal 2023 revenue?

Kennametal reported $2.1 billion in revenues for fiscal 2023.