SEGMENT DATA

Kennametal delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions. To provide these solutions, we harness our knowledge of advanced materials and application development with a commitment to environmental sustainability. Our product offering includes a wide selection of standard and customized technologies for metalworking, such as sophisticated metalcutting tools, tooling systems and services, as well as advanced, high-performance materials, such as cemented tungsten carbide products, super alloys, coatings and investment castings to address customer demands. We offer these products through a variety of channels to meet customer-specified needs.

The Industrial segment generally serves customers that operate in industrial end markets such as aerospace and defense, transportation and general engineering. The customers in these end markets manufacture engines, airframes, automobiles, trucks, ships and various types of industrial equipment. The technology and customization requirements for customers we serve vary by customer, application and industry. The value we deliver to our Industrial segment customers centers on our application expertise and our diverse offering of products and services.

The Infrastructure segment generally serves customers that operate in the earthworks and energy sectors who support primary industries such as oil and gas, power generation, underground, surface and hard-rock mining, highway construction and road maintenance. Generally, we rely on customer intimacy to serve this segment. By gaining an in-depth understanding of our customers’ engineering and development needs, we are able to offer complete system solutions and high-performance capabilities to optimize and add value to their operations.

Corporate expenses related to executive retirement plans, the Company’s Board of Directors and strategic initiatives, as well as certain other costs, are reported as Corporate.

Our sales and operating income (loss) by segment are as follows:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2014			2013			2014			2013
Sales:
Industrial	$	371,557		$	370,647		$	749,415		$	708,876
Infrastructure	304,074			319,289			621,157			600,867
Total sales	$	675,631		$	689,936		$	1,370,572		$	1,309,743
Operating (loss) income:
Industrial	$	41,795		$	33,218		$	85,812		$	73,038
Infrastructure ⁽⁵⁾	(371,920		)	18,604			(352,699		)	40,294
Corporate	(3,646		)	(2,106		)	(5,864		)	(4,787		)
Total operating (loss) income	(333,771		)	49,716			(272,751		)	108,545
Interest expense	7,960			8,037			16,170			15,118
Other expense, net	2,223			856			409			1,466
(Loss) income from continuing operations before income taxes	$	(343,954	)	$	40,823		$	(289,330	)	$	91,961

⁽⁵⁾ See Note 18 regarding Infrastructure segment impairment charges for goodwill and other intangible assets.