6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
RWG manufactures spherical and ball bearings, rod ends, bushings and specialty components primarily for the aerospace industry. The company employs about 85 people, had sales in 2001 of approximately US$10 million and, along with its predecessor companies, has been in business for more than 50 years. RWG's largest customer is Airbus Industries.
'RWG increases Kaman's presence in European aircraft markets, and complements our existing line of proprietary Kamatics bearings for aircraft and other specialized uses,' said Paul R. Kuhn, president and CEO of Kaman Corp. 'At the same time, RWG's presence in U.S. markets will be increased. RWG is an excellent company with a highly skilled workforce, and we are pleased to have them become part of Kaman.'
Industrial Distribution financials
Kaman's Industrial Distribution's operating profit was $3.5 million in the quarter, compared to $3.6 million the previous year. Sales for the 2002 quarter were $121.0 million (including $9.8 million from recent acquisitions), compared to $113.0 million in the 2001 quarter.
For the six-month period, segment sales were $238.5 million (including $17.3 million from recent acquisitions) with operating profit of $6.1 million. In the comparable period last year, sales were $236.1 million with operating profit of $8.7 million.
Before taking into account the recent acquisitions, second quarter sales were off only 1.6 percent from the prior year's quarter, the segment's best showing in a prior year quarter comparison since the end of 2000. Cost reduction activity, which has been ongoing, has helped keep this segment profitable during the manufacturing downturn and should put the segment in position to see increased profit margins when sales begin to recover. Operating results from the recent acquisitions, however, have thus far been marginal as the company works to integrate them into the segment.
Kuhn said, 'Kaman's Industrial Distribution segment performed well in the quarter in light of intense pricing pressures and very difficult economic conditions affecting its customer base. There are indications that the manufacturing sector is slowly starting a turnaround. If the turnaround is real, we could start seeing the benefits later this year. We are pleased with early results from Delamac, the industrial products distribution company in Mexico in which we acquired a majority interest in March.
'On the industrial side, we are starting to see some early signs of economic improvement in the manufacturing sector which, if they hold, would benefit our Industrial Distribution business several months down the road,' Kuhn said. 'Our acquisition of A-C Supply last fall has given us an expanded presence in the Upper Midwest, and we are seeing good results from our purchase this spring of a majority interest in a distributor in Mexico.