Kennametal names replacement for retiring CEO
Kennametal Inc. hired an executive with broad experience in specialty materials to replace retiring Chief Executive Carlos Cardoso.
The Unity-based toolmaker said Don Nolan became CEO effective Monday. Nolan, 54, most recently was president of the materials group at Avery Dennison Corp., a Glendale, Calif.-based maker of labels and packaging materials.
He will share the CEO responsibilities with Cardoso until the longtime chief executive’s retirement takes effect on Dec. 31. Kennametal elected William Newlin, a board member, as chairman, a position also held by Cardoso.
Cardoso said in August that the timing was right for him to step down after nine years leading Kennametal.
His announcement surprised some analysts who said he was doing a good job and was instrumental in the company’s rebound from the recession.
Newlin, who is chairman of Newlin Investment Co. in Sewickley, said Nolan is a “dynamic leader” with more than 30 years’ experience in the specialty materials industry. He credited Nolan with increasing sales and profitability at Avery Dennison.
Avery Dennison’s materials group posted revenue last year of $4.5 billion, up 5 percent from the previous year, according to its 2013 financial report. The group had operating income, before taxes and interest, of $442.8 million, a 10 percent increase from a year earlier.
“We expect Don to accelerate the company’s growth with industry-leading customer engagement and innovation, while ensuring we have the right people, portfolio, cost structure and performance to serve Kennametal,” Newlin said.
Kennametal reported revenue of $2.8 billion in its fiscal year ended June 30, compared with $2.6 billion a year earlier.
Net income of $158.4 million for the year was 22 percent lower than the previous year on higher expenses related to an acquisition of Allegheny Technologies Inc.’s tungsten business.
“I see tremendous amount of opportunity for future growth, for future innovation and for future success in markets everywhere around the world,” Nolan said in a video Kennametal produced to introduce the CEO to workers.
The company has 14,000 employees, including 1,200 in Pennsylvania, mostly in Westmoreland County.
Nolan, who was not available to comment, has held leadership roles at Valspar Corp., Loctite Corp. and Ashland Chemical Co., Kennametal said.
The Michigan native has a master’s degree in mechanical engineering and a Master of Business Administration degree.
Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or [email protected].