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Segment Data
6 Months Ended
Dec. 31, 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.
In the Industrial segment, we focus on customers in the transportation, general engineering, aerospace and defense market sectors, 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 various other types of industrial equipment. The technology and customization services 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, 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 by segment are as follows:
 
Three Months Ended December 31,
 
Six Months Ended December 31,
(in thousands)
2018
 
2017
 
2018
 
2017
Sales:
 
 
 
 
 
 
 
Industrial
$
317,320

 
$
312,448

 
$
637,878

 
$
609,912

Widia
48,954

 
47,744

 
97,626

 
92,987

Infrastructure
221,120

 
211,153

 
438,576

 
410,900

Total sales
$
587,394

 
$
571,345

 
$
1,174,080

 
$
1,113,799

Operating income:
 
 
 
 
 
 
 
Industrial
$
57,519

 
$
40,504

 
$
116,061

 
$
72,543

Widia
1,728

 
474

 
3,822

 
154

Infrastructure
20,614

 
23,833

 
44,474

 
44,223

Corporate
(1,003
)
 
(1,170
)
 
(2,347
)
 
(1,108
)
Total operating income
78,858

 
63,641

 
162,010

 
115,812

Interest expense
8,104

 
7,231

 
16,201

 
14,379

Other income, net
(4,022
)
 
(3,220
)
 
(6,782
)
 
(7,437
)
Income from continuing operations before income taxes
$
74,776

 
$
59,630

 
$
152,591

 
$
108,870


The following table presents Kennametal's revenue disaggregated by geography:
 
Three Months Ended
 
December 31, 2018
 
December 31, 2017
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
 
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
Americas
40%
 
45%
 
66%
 
50%
 
37%
 
46%
 
65%
 
48%
EMEA
41
 
26
 
15
 
30
 
42
 
26
 
16
 
31
Asia Pacific
19
 
29
 
19
 
20
 
21
 
28
 
19
 
21
 
Six Months Ended
 
December 31, 2018
 
December 31, 2017
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
 
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
Americas
40%
 
45%
 
66%
 
50%
 
38%
 
47%
 
64%
 
48%
EMEA
40
 
25
 
15
 
29
 
41
 
25
 
16
 
31
Asia Pacific
20
 
30
 
19
 
21
 
21
 
28
 
20
 
21
The following tables presents Kennametal's revenue disaggregated by end market:
 
Three Months Ended December 31, 2018
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
General engineering
44%
 
100%
 
32%
 
44%
Transportation
34
 
 
 
18
Aerospace and defense
13
 
 
 
7
Energy
9
 
 
36
 
19
Earthworks
 
 
32
 
12
 
Three Months Ended December 31, 2017
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
General engineering
42%
 
100%
 
32%
 
43%
Transportation
37
 
 
 
20
Aerospace and defense
12
 
 
 
6
Energy
9
 
 
32
 
17
Earthworks
 
 
36
 
14
 
Six Months Ended December 31, 2018
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
General engineering
44%
 
100%
 
32%
 
44%
Transportation
34
 
 
 
19
Aerospace and defense
13
 
 
 
7
Energy
9
 
 
35
 
18
Earthworks
 
 
33
 
12
 
Six Months Ended December 31, 2017
(in thousands)
Industrial
 
Widia
 
Infrastructure
 
Total Kennametal
General engineering
42%
 
100%
 
31%
 
43%
Transportation
37
 
 
 
20
Aerospace and defense
12
 
 
 
6
Energy
9
 
 
32
 
17
Earthworks
 
 
37
 
14