Kaman Corp., Bloomfield, CT, reported sales for the first quarter ended April 3, 2009, were $294 million, up 2.9% from first quarter 2008. Profit declined 39.3% to $5.4 million. Stability in the Aerospace group offset slower sales from the Industrial Distribution segment.
"The impact of the current economic environment is being felt industry-wide, and KIT is no exception. The market softness we experienced at the end of 2008 continued in the first quarter of 2009, said T. Jack Cahill, president of Kaman Industrial Technologies. In response, we have taken a number of actions to reduce our operating costs, scale the business to match the marketplace conditions and protect profitability, with the costs of some of these steps affecting segment performance during the period. Despite the decline in the overall market, KIT continues to gain market share."
Industrial Distribution segment sales were $176.9 million, down 2.9% from the prior year. Acquisitions made during 2008 contributed $14.1 million in sales. The slowing industrial market and uncertain economy that the business began experiencing during the fourth quarter of 2008 resulted in a severe decline in sales to OEM customers and softness in sales to MRO customers.
The four Aerospace businesses generated sales of $117.1 million, an increase of 13% over first quarter 2008.
Specialty Bearings sales remained essentially flat at $35.8 million due to a stronger U.S. dollar, lingering effects of the Boeing strike and softening demand in the commercial aerospace market, partially offset by strong military program sales.
Precision Products sales of $20.7 million were down 14.1% from the first quarter of 2008. The decrease in sales occurred primarily as a result of the absence of $4.1 million in sales recorded in the first quarter of 2008 associated with programs that did not recur in 2009.
Sales in the Helicopters segment were $16.4 million, up 12.3% from the prior year. Sales increased due to higher revenue from the Egypt maintenance and upgrade program, SH-2G spares, and Sikorsky subcontract work. These sales were partially offset by the loss of revenue from the SH-2G(A) program with Australia, which was terminated in 2008.
Aerostructures segment sales were $44.3 million in the first quarter of 2009, up 53.8% over the first quarter of 2008. Contributing to the sales increase were higher production levels and increased shipments to Sikorsky for the BLACK HAWK cockpit program and increased military sales.