Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Adam Uhlman with Cleveland Research.
Adam Uhlman - Cleveland Research
I guess first with a clarification. Frank could you talk about what the one-time labor negotiation benefit was in Europe?
Frank Simpkins
Yeah, the bottom line is we're able to get some further concessions with our European and we had put that at an incremental amount from the guidance that we provided of about $3 million.
Adam Uhlman - Cleveland Research
And then do you have any sense of how much your distributor partners have de-stocked their inventories through this down cycle and what the benefit Kennametal might be able to capture as it start to sell to the level of retail sales going forward. Have you been able to dimensionalize that at all?
Carlos Cardoso
We know that the distribution channel has de-stocked, but we also know that the end user in other words our customers have de-stocked even further. So, we really have two opportunities in de- stocking is one, is in the distribution channel, the other one is at the customer themselves. But we can't quantify that at this point.
Operator
Our next question comes from the line of Ann Duignan with JPMorgan.
Ann Duignan - JPMorgan
Good morning. Could you talk a little bit about the $30 million in restructuring savings, where the lion share of those savings have taken place? I'm trying to get a sense of what kind of volume the metalworking business is going to need to return to profitability and then as a follow-up could you talk a little about sequentially which business you would expect to start to see positive organic growth year-over-year as we go forward into the back half of the year?
Frank Simpkins
Yeah Ann, as far as the restructuring right now the bulk of it I should say a majority of it is in MSSG. Probably give or take two-thirds of it right now because if you go back to the number of manufacturing facilities we had more in MSSG as opposed to advance materials. So, two-thirds or one-third will [fall park] right that I expect that trend to continue to go as we go in the out periods or sequentially.
And that from an organic perspective that's a tough one I would expect probably advance materials given some of the mix and there it maybe be the first one that would show some organic as opposed to metalworking given the guidance that we've talked, but the one area from an MSSG that's probably a little bit softer than what we provided in the month of July, I would say would Europe which is a bigger component of MSSG and on the advanced material side the one area that I think we referenced on the energy side. So that's obviously a smaller part of the company, but they would be the drivers and that's why I'd say it would be probably first advanced materials as we see it going forward.
- To read the full transcript on Seeking Alpha, click here »
