Kaman sales up, earnings down
Kaman Industrial Technologies reported sales increased 1.8% in the first quarter to $257.2 million compared to $252.6 million a year ago.
Acquisitions contributed $23.2 million in sales in the quarter, while organic sales decreased 5.9%, falling $18.7 million for the period.
Operating income for the quarter was $4.6 million compared to $12.3 million in the first quarter of 2012. The operating profit margin for the first quarter of 2013 was 1.8% compared to 4.9% a year ago. Operating profit margin was lower due to $3.0 million in restructuring costs recorded in the first quarter of 2013 and a decrease in organic sales which impacted our ability to leverage our fixed costs.
"Distribution faced a decline in organic sales which resulted in its operating profit contribution coming in below prior year," said Neal J. Keating, chairman, president and chief executive officer of Kaman Corp.
Keating added that workforce reductions and the consolidation of field operations in geographic regions where Kaman Industrial Technologies had multiple facilities, resulted in $3 million of pre-tax expense for the quarter. "These expenses combined with the softening of certain of our end markets impacted the performance of this segment in the first quarter. We continue to expect significant improvement in our performance in the second half of the year and believe the cost structure adjustments we made will contribute significantly to that improvement," he said.
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.
