Kaman sales up 7.7 percent
Acquisitions helped drive a 7.7% sales increase in the fourth quarter for Kaman Industrial Technologies.
The company had sales of $267.48 million for the quarter, compared to $248.28 million in the same period last year.
Acquisitions contributed $6.4 million in sales for the period, while organic sales increased 3.5% on a sales per sales day basis.
Income fell to $10.35 million compared to $11.15 million last year.
Operating profit margin in the fourth quarter decreased due to lower purchase volume incentives and the recognition of $1.1 million in losses on mining contracts at Kaman's Mexico operations. These decreases were partially offset by the contribution from the acquisitions completed in 2012 and 2013 and cost savings from first quarter restructuring.
"At [Kaman Industrial Technologies] we are focusing on making the necessary investments in this business in order to improve its long-term profitability, including the roll-out of our new ERP system," said Neal J. Keating, chairman, president and chief executive officer. "Additionally, we are reviewing the supply base with the intent of consolidating these relationships in order to improve our volume incentives. We are also increasing our sales force, a process which began in the first quarter of 2014, to further capitalize on expected improvements in the markets we serve."
Sales for the full year were $1.06 billion, compared to $1.01 billion in 2012. Operating income for the year was $43.32 million, compared to $50.56 million in 2012. The increase in sales for the full year was due to the contribution of sales from acquisitions, partially offset by a decrease in organic sales of 1.7% when measured on a sales per sales day basis.
For 2014, the company expects sales of $1.11 billion to $1.15 billion.
INDUSTRIAL SUPPLY MAGAZINE
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