Kaydon Sales Down Slightly in 3Q
Bearings manufacturer's results boosted by wind energy sales.
Bearings manufacturer Kaydon Corp. (NYSE: KDN), Ann Arbor, MI, sales in the third quarter 2009 were $123.6 million, down slightly from $126.8 million in the prior-year period.
Wind energy sales in the third quarter 2009 were $41 million, an increase of $19.4 million from last year. This 90% increase offset sales declines in other end markets for the manufacturer.
Profit for the quarter was $16.1 million, roughly the same as last year.
Backlog was $250.1 million at Oct. 3, 2009, compared with $242.8 million at July 4, 2009, the end of the second quarter 2009, and $354.5 million at Sept. 27, 2008. Wind energy backlog was $129.6 million at Oct. 3, 2009, compared with $124.1 million at July 4, 2009, and $181.6 million at Sept. 27, 2008.
James O’ Leary, CEO, said: “Overall, our industrial end markets appear to have stabilized at the relatively low levels noted in our previous quarter. Certain markets, notably wind energy and medical, were stronger as they benefited from strategic positioning and the capital investments made in prior periods. Also noteworthy, our military end market, while below prior year’s level due to the timing of certain program releases, was solid sequentially and the current quarter saw higher orders and shipments of military vehicle products.
“While the current quarter showed sequential strength in our wind energy, medical, and military markets, it is important to note that their longer term outlooks will be heavily influenced by governmental policy issues including clear, long-term support for renewable energy initiatives and funding for military spending. That said, we are pleased with our position in these markets given the current environment. "
Friction control product sales in the third quarter of 2009 were $87.1 million, compared with $79.3 million in the third quarter 2008. Sales to the wind energy and medical markets exceeded prior year’s levels offsetting declines in industrial markets. Industrial end markets have settled at relatively low levels. While certain markets, such as medical and semiconductor, have shown some signs of strengthening, higher-margin, industrial machinery businesses remain depressed, although no longer worsening.
Velocity control product sales in the third quarter of 2009 were $12.2 million, compared to $17.1 million in the third quarter of 2008, due principally to reduced demand related to the general economic decline in both Europe and North America.
Sealing product sales in the third quarter of 2009 were $8.8 million, compared to $10.8 million in the third quarter of 2008, due to lower demand stemming from the general economic decline.
Sales from the company’s remaining businesses in the third quarter of 2009 were $15.5 million, compared to $19.7 million in the third quarter of 2008 resulting from lower demand related to the general economic decline. Third quarter 2009 other business operating income was $1.4 million, compared to $1.8 million.
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