
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 12, 1991                   TAG: 9103120096
SECTION: BUSINESS                    PAGE: A-3   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

PATENT INFRINGEMENT TO HURT KENNAMETAL

Kennametal Inc., a Latrobe, Pa., metalworking company, said Monday its earnings will be reduced by about 25 cents a share as a result of a $5.3 million patent infringement award last week.

A Federal District Court jury in Roanoke on Friday found that a patent for a carbide cutter bit held by a Chilhowie division of GTE Products Corp. is valid. GTE said its patent for the bits was infringed by Kennametal.

The Pennsylvania company said a judgment in the case is subject to a court ruling on motions filed by both sides. Kennametal said it will appeal any unfavorable judgment.

Sales of the carbide cutter bits at issue came to about $12 million or 2 percent of the company's sales in the past fiscal year, Kennametal said.

Sales fell by about 5 percent in the first two months of the year as a result of the recession, said Quentin C. McKenna, chairman. He predicted that first-quarter earnings will fall below those of a year ago. - Staff report

by CNB