Kennametal Inc. (NYSE:KMT) Q3 2022 Results Earnings Conference Call May 3, 2022 8:00 AM ET

Company Participants

Kelly Boyer - Vice President, Investor Relations

Christopher Rossi - President and Chief Executive Officer

Damon Audia - Vice President and Chief Financial Officer

Conference Call Participants

Steve Volkmann - Jefferies

Steven Fisher - UBS

Julian Mitchell - Barclays Capital

Tami Zakaria - J.P. Morgan

Dillon Cumming - Morgan Stanley

Operator

Good morning and welcome to the Kennametal Third Quarter Fiscal 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded.

I'd now like to turn the conference over to Kelly Boyer. Please go ahead.

Kelly Boyer

Thank you, operator. Welcome, everyone, and thank you for joining us to review Kennametal's third quarter fiscal 2022 results. Yesterday evening, we issued our earnings press release and posted our presentation slides on our website. We will be referring to that slide deck throughout today's call.

I'm Kelly Boyer, Vice President of Investor Relations. Joining me on the call today are Chris Rossi, President and Chief Executive Officer, and Damon Audia, Vice President and Chief Financial Officer. After Chris and Damon's prepared remarks, we will open the line for questions.

At this time, I would like to direct your attention to our forward-looking disclosure statement. Today's discussion contains comments that constitute forward-looking statements and, as such, involve a number of assumptions, risks and uncertainties that could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. These risk factors and uncertainties are detailed in Kennametal's SEC filings.

In addition, we will be discussing non-GAAP financial measures on the call today. Reconciliations to GAAP financial measures that we believe are most directly comparable can be found at the back of the slide deck and on our Form 8-K on our website.

And with that, I'll turn the call over to Chris.

Christopher Rossi

Thanks, Kelly. Good morning, everyone. Thanks for joining today's call. We're going to start with an overview of the quarter, highlighting some key points on our continuing strong results despite the changing macroeconomic environment, followed by our expectations for Q4. Damon will then go over the Q3 financial results and Q4 outlook in more detail. And finally, I'll make some summary comments before opening the call for questions.

Beginning on slide 2 on the presentation deck. We posted strong operating leverage again this quarter as well as improving margins through the disciplined execution of our commercial and operational excellence initiatives. We delivered sales of $512 million, an increase of 8% organically year-over-year and 5% sequentially. This was slightly above our normal sequential trend despite continuing challenges in transportation, China, and stopping sales in Russia late in the quarter.