News / Though Sales Increase, Kaman Lowers Annual Revenue Targets
Date: 2013-10-30
Though Sales Increase, Kaman Lowers Annual Revenue Targets
Kaman Corp. on Monday posted higher third quarter sales, but it lowered its outlook for the year's sales by a few percent.
Neal J. Keating, the company's chief executive said in a written statement: "Broad based strength across Aerospace and improved profit performance at Distribution led to very strong results for our third quarter."
The Bloomfield aerospace manufacturer and distribution firm, however, lowered its year-long sales guidance slightly to $1.69 billion from $1.73 to reflect shifted delivery timing in its aerospace division and slower than expected growth in its distribution division.
On its aerospace side, the Bloomfield firm manufacturers and distributes aerospace components, including bearings, aerostructures, missile and bomb systems, as well as subcontracting work for helicopters. The company's industrial business distributes more than 4 million mechanical parts.
Third quarter revenues rose 3 percent to $424 million in the third quarter thanks to additional sales from distribution businesses Kaman has acquired in the past year. In August, Kaman announced its third distribution acquisition in three months, Western Fluid Components, after buying Northwest Hose & Fittings in May and Ohio Gear & Transmission in June.
Kaman's net earnings from continuing operations jumped to $18.7 million in the third quarter, or 68 cents a diluted share, from $14.8 million, or 55 cents a share, in the same period last year. The results beat a consensus of Wall Street analysts, which expected the company to report 63 cents a diluted share.
Profit margins at the aerospace side of the company, whose revenues come from bomb fuzes and helicopter maintenance and upgrades, increased by half of a percentage point to 18.3 percent. "The increase in operating margin was achieved due to favorable product mix, demonstrating the benefits of the diversity of our portfolio," Keating said.
Sales for Kaman's distribution business jumped about 6 percent, with acquired businesses contributing most of the increase, the company said. Operating profit margins rose as well for the distribution segment.
"Operating profit margin increased due to the contribution from the acquisitions we completed in 2012 and 2013, reduced incentive compensation and cost savings from our first quarter restructuring," Keating said.
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