Posted May 7, 2010
Kaman reports 1.3 percent sales gain
Kaman Industrial Technologies said its sales were $179.3 million in the 2010 first quarter compared to $176.9 million a year ago, an increase of 1.3%.
Operating income was $4.8 million, a 73.2% increase from operating income of $2.8 million in the first quarter of 2009. The operating profit margin for the first quarter of 2010 was 2.7% compared to 2.3% in the fourth quarter of 2009 and 1.6% in the first quarter of 2009. This year-over-year and sequential improvement in operating margin was a result of the leverage from higher sales volume as well as on-going cost reductions.
Sales for the first quarter reflect improved performance in the company's end-markets, particularly to OEM customers. This quarter marked the first positive year-over-year sales growth since the fourth quarter of 2008. On a sales-per-day basis, first quarter sales were 10.5% higher than the fourth quarter of 2009 and 2.9% above the first quarter of 2009.
"Revenue trends in our Industrial Distribution segment strengthened significantly during the quarter and were above our expectations, allowing us to achieve growth for the first time since 2008 despite facing the most difficult year-over-year comparison we will have this year," said Neal J. Keating, chairman, president and CEO of Kaman Corp. "We also announced earlier this week the acquisition of Minarik Corporation, our largest Industrial Distribution acquisition to date, which combined with our recent acquisitions of Allied Bearings Supply and Fawick de Mexico, will expand our geographic footprint and increase our served market in this segment."
