6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
For the first nine months of 2004, the segment had operating profits of $16.3 million, up 81% from $9.0 million in the same period last year. Sales for the 2004 nine-month period were $440.2 million including $21.8 million from ISI, up 21% from $364.7 million a year ago. Vendor incentives in the form of rebates continue to be an important contributor to the segment's operating profits, the company said.
"The strong results for Kaman's Industrial Distribution segment reflect a strengthening U.S. industrial economy along with the impact of expense reduction, process improvement, and lean thinking initiated by the company during the manufacturing recession years of 2001-2003," said Paul R. Kuhn, chairman, president and CEO of parent Kaman Corp. "Kaman's strategy of expanding its geographic footprint through selective acquisitions and branch openings also contributed. In the third quarter the company acquired Brivsa de Mexico, a small Monterrey, Mexico distributor, expanding the company's ability to serve its national account customers with operations in this important Mexican industrial center.
"The industrial environment continued to be strong throughout the quarter even though some of the leading indicators have softened in recent periods. Sales in the natural resource-oriented Western U.S. economy contributed to the sales growth as the demand for basic resources has remained high and U.S. dollar exchange rates stimulated the export market. East and Central regions also produced strong results, while the Southern markets are expected to contribute to results as hurricane damaged facilities are brought back on line."
Kaman is the nation's third largest distributor of power transmission, motion control, material handling and electrical components and a wide range of bearings. Products and value-added services are offered to a customer base of more than 50,000 companies representing a highly diversified cross-section of North American industry. The company's footprint of nearly 200 branches and regional distribution centers covers 70 of the top 100 industrial markets in the U.S.