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Segment Data
3 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
SEGMENT DATA
SEGMENT DATA
Our reportable operating segments have been determined in accordance with our internal management structure, which is organized based on operating activities, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. We do not allocate certain corporate expenses related to, among other things, executive retirement plans, our Board of Directors and strategic initiatives to our reportable operating segments. These costs are instead reported in Corporate. None of our three reportable operating segments represent the aggregation of two or more operating segments.
The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering, aerospace and defense market sectors, as well as the machine tool industry, delivering high performance metalworking tools for specified purposes. Our customers in these end markets use our products and services in the manufacture of engines, airframes, automobiles, trucks, ships and other various types of industrial equipment. The technology and customization requirements we provide vary by customer, application and industry. Industrial goes to market under the Kennametal® brand through its direct sales force, a network of independent and national chain distributors, integrated supplier channels and via the internet. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support.
The Widia segment offers a focused assortment of standard custom metal cutting solutions to general engineering, aerospace, energy and transportation customers. We serve our customers primarily through a network of value added resellers, integrated supplier channels and via the internet. Widia markets its products under the WIDIA®, WIDIA Hanita® and WIDIA GTD® brands.
The Infrastructure segment generally serves customers that operate in the energy and earthworks market sectors that support primary industries such as oil and gas, power generation and chemicals; underground, surface and hard-rock mining; highway construction and road maintenance; and process industries such as food and feed. Our success is determined by our ability to gain an in-depth understanding of our customers’ engineering and development needs, and to provide complete system solutions and high-performance capabilities to optimize and add value to their operations. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as distributors.
Our sales and operating income (loss) by segment are as follows:
 
Three Months Ended September 30,
(in thousands)
2018
 
2017
Sales:
 
 
 
Industrial
$
320,559

 
$
297,464

Widia
48,672

 
45,243

Infrastructure
217,456

 
199,747

Total sales
$
586,687

 
$
542,454

Operating income (loss):
 
 
 
Industrial
$
58,542

 
$
32,039

Widia
2,093

 
(320
)
Infrastructure
23,860

 
20,390

Corporate
(1,343
)
 
62

Total operating income
83,152

 
52,171

Interest expense
8,097

 
7,149

Other income, net
(2,761
)
 
(4,218
)
Income from continuing operations before income taxes
$
77,816

 
$
49,240


The following table presents Kennametal's revenue disaggregated by geography:
 
Three Months Ended
 
September 30, 2018
 
September 30, 2017
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
 
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
Americas
39%
 
45%
 
65%
 
49%
 
39%
 
48%
 
63%
 
48%
EMEA
40
 
24
 
15
 
29
 
41
 
24
 
17
 
31
Asia Pacific
21
 
31
 
20
 
22
 
20
 
28
 
20
 
21
The following tables presents Kennametal's revenue disaggregated by end market:
 
Three Months Ended September 30, 2018
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
General engineering
43%
 
100%
 
32%
 
44%
Transportation
35
 
 
 
19
Aerospace and defense
13
 
 
 
7
Energy
9
 
 
34
 
17
Earthworks
 
 
34
 
13
 
Three Months Ended September 30, 2017
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
General engineering
42%
 
100%
 
32%
 
43%
Transportation
37
 
 
 
20
Aerospace and defense
12
 
 
 
7
Energy
9
 
 
31
 
16
Earthworks
 
 
37
 
14