Kennametal (KMT) increases quarterly dividend 11% to $0.20/share

• Current Div/yield 0.18/2.17
• Increased to $0.20/share

Kennametal beats by $0.01, beats on revs; guides FY16 EPS below consensus; Increases quarterly dividend 11% to $0.20/share (KMT) : Reports Q4 (Jun) earnings of $0.46 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.45; revenues fell 17.4% year/year to $637.7 mln vs the $627.31 mln consensus.

Co issues downside guidance for FY16, sees EPS of $1.70-2.00 vs. $2.11 Capital IQ Consensus Estimate, which includes foreign currency headwinds of approximately $0.30 to $0.35 due to the continued strength of the U.S. dollar.

For fiscal year 2016, the company's outlook reflects ongoing market uncertainties as well as limited visibility related to customer demand trends. Kennametal's current assumptions include expectations of some growth in the Industrial segment, although not sufficient to offset weakness in the Infrastructure segment.

In addition, orders activity levels remained weak during the June quarter, and the company expects year-over-year comparisons to be unfavorable through December 2015.