First quarter earnings at Kennametal (KMT) won a thumbs up from equity brokerage Jefferies as room to cut head count and costs further presents further upside for cash flows.

Basic materials demand in China's industrial sector showed end-demand is "fairly stable," Credit Suisse analysts said in an Oct. 24 report, even suggesting "a slight improvement above normal seasonality.

Kennametal announced their second quarter earnings and revenue.

The company is expected to reported earnings of US$0.11 per share and total revenue of US$500.28 million for the quarter.