November 10, 2008

On Friday November 7th Frank Simpkins, Vice President and Chief Financial Officer of Kennametal provided a strategic overview of the finance and accounting functions that report to him and discussed how he coordinates them at the CFO level to provide a competitive edge in the global economy. As the CFO of a multinational company, Mr. Simpkins was able to provide insight into the challenges that fluctuating commodity prices and exchange rates pose to a publicly traded company. Having just presented Kennametal’s quarterly report at the Goldman Sachs Global Industrials Conference on Wednesday, Mr. Simpkins described how the market and its analysts are reacting to the current economic crisis, and what impact it may have on the company’s upcoming M&A activity.

The discussion was timely and informative for Smeal MBA’s who are assessing how the current economy is affecting businesses like Kennametal and how they can prepare themselves to support the finance and accounting functions.

Frank P. Simpkins is Vice President and Chief Financial Officer of Kennametal Inc. (NYSE: KMT). In this role, Mr. Simpkins is responsible for the company’s accounting, finance, internal audit, investor relations, M&A, tax and treasury functions.

Mr. Simpkins joined Kennametal in October 1995, and has held a number of positions of increasing responsibility within the Finance organization. Additionally, he is a member of the Board of Directors of Kennametal India Ltd. Prior to joining Kennametal, Mr. Simpkins was CPA / Manager with the former Coopers & Lybrand (now PricewaterhouseCoopers), having joined Coopers in 1986.

-Ken Holmes, kdh206@psu.edu
MBA Class of 2009

Returning alumni are always a sign of school spirit. However, when an alumnus comes and conducts an in-depth discussion of their personal business venture for MBA students to critique and make suggestions, it is a sign of commitment. This was the case with Ken Wahlster, a former Smeal MBA Penn Stater. After working in the corporate world for many years, Ken decided to turn one of his passions into a business opportunity. Bikebandit.com is now a leading supplier of motorcycle and other sport vehicle parts.

Ken presented the SCMA with an opportunity to do an interactive case study to discuss some of the supply chain problems Bikebandit.com is currently facing:

· How can time to shipment be minimized?

· How can time in transit be minimized?

· Should Bikebandit.com open another location? If so, where?

· Should Bikebandit.com buy one of its suppliers? If so, which one?

SCMA members were able to gain an in-depth understanding of the business model of this privately-owned firm and provide recommendations to its owner. This kind of opportunity is rare, but was made possible through the commitment of a Smeal MBA alumnus.

Stephanie Bond
Smeal MBA Class of 2010

Stephanie is a first year MBA student with a concentration in Supply Chain Management.  Before coming to Smeal, Stephanie just finished her undergraduate education at the University of Arkansas.  For this reason, and many more, Stephanie is a dedicated Razorback Basketball enthusiast.