
	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 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, which includes Stellite, 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 by segment are as follows:



	Three Months Ended March 31,						Nine Months Ended March 31,
(in thousands)	2013			2012			2013			2012
Sales:
Industrial	$	373,807		$	418,554		$	1,088,155		$	1,246,261
Infrastructure	281,553			277,857			829,808			750,769
Total sales	$	655,360		$	696,411		$	1,917,963		$	1,997,030
Operating income:
Industrial	$	44,961		$	71,195		$	117,552		$	206,778
Infrastructure	32,332			34,060			95,248			99,927
Corporate	(2,320		)	(1,963		)	(6,978		)	(7,754		)
Total operating income	$	74,973		$	103,292		$	205,822		$	298,951
Interest expense	$	7,504		$	8,003		$	20,430		$	18,746
Other expense (income), net	749			(486		)	502			(1,169		)
Income from continuing operations before income taxes	$	66,720		$	95,775		$	184,890		$	281,374