Kaman sales decline 12.2 percent
Kaman Industrial Technologies reported a sales decline of 12.2% during the fouth quarter to $265.7 million.
That compares to sales of $302.7 million in the same period last year.
Operating income of $6.6 million for the period compared to income of $14.3 million in the same period last year.
Weakness in the industrial economy, most notably in commodities, largely drove the decrease in organic sales volumes putting pressure on operating margins for the quarter and full year, the company said. In the fourth quarter Kaman said it took action at its distribution segment to adjust the cost structure to reflect its expectation for continued market challenges. These actions resulted in $1.5 million of expense during the quarter but will generate approximately $7.0 million in annual expense savings.
For the full year, distribution segment sales increased 1.3% to $1.17 billion, compared to $1.16 billion in 2014. Operating income of $49.4 million for the year compared to income of $56.8 million in 2014.
"At Distribution, we expect a modest decrease in the top line for 2016, as we believe market conditions will remain weak in the first half of the year and improve on a relative basis over the second half of the year," according to a company statement. The actions taken in the fourth quarter to adjust cost structure and the opportunities to drive improved performance support projected operating margins in the range of 4.4% to 4.6% on sales of $1.12 billion to $1.16 billion.
Kaman Corp. as a whole saw fourth quarter sales decline by 5.4% to $452.28 million, compared to $477.93 million in the same period last year. For the full year, Kaman Corp.'s sales of $1.77 billion compared to sales of $1.79 billion in 2014.