Disclosed is a cutting tool mounted on a shaft rotating about an axis, including a body having first cutting inserts mounted with equal spacing at the outer periphery of the body, which first cutting inserts have a cutting edge extending across the width of the body at a predetermined peripheral radius from the axis; and second cutting inserts mounted with equal spacing adjacent the outer periphery on a first side surface of the body, which second cutting inserts have a cutting edge extending in an axial plane perpendicular to the axis. The cutting edge of each first insert extends up to a predetermined distance from the axial plane of the second inserts; and the cutting edge of each second insert preceding a first insert extends a predetermined radial distance outside the peripheral radius of the cutting edges of the first inserts. Also disclosed is a related apparatus.