Kaman Industrial Technologies sales up 5.7 percent
Kaman Industrial Technologies reported a sales increase of 5.7% in the third quarter to $273.0 million compared to $258.3 million a year ago.
Acquisitions contributed $17.8 million in sales in the quarter. Organic sales per sales day improved sequentially; however, they decreased 1.2% from the third quarter of 2012.
Operating income for the quarter was $14.7 million, or 5.4%, compared to $12.9 million, or 5.0%, in the third quarter of 2012. Operating profit margin increased due to the contribution from the acquisitions completed in 2012 and 2013, reduced incentive compensation and cost savings from first quarter restructuring, the company said. These increases were offset by lower purchase volume incentives due to the reduced sales noted above and losses on mining contracts at Mexico operations.
Kaman Corp.'s total sales for the quarter were $424 million. Net income was $31.4 million, or 70 cents per diluted share. That compares to earnings of $24.8 million, or 56 cents per share, on sales of $409.5 million in the third quarter of 2012.
"Distribution delivered an operating profit margin of 5.4% in the third quarter, a 30 basis point sequential improvement from 5.1% in the second quarter," said Neal J. Keating, chairman, president and CEO. "While this was slightly below our expectations, due to lower organic growth rates than we had anticipated, we are pleased with the sequential improvement in a challenging industrial environment. During the quarter we saw several encouraging signs, including achieving positive organic growth rates in September for the first time in the past four quarters, and are well positioned to capitalize as organic sales continue to improve."
For the full year, the company anticipates sales of $1.07 to $1.08 billion.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
