Kaman Corp. reported sales of $293 million, compared with $271.3 million in the prior-year quarter, a jump of 8%. Net income for the quarter was $7.5 million, compared with $2.8 million the previous year.
For the first six months of 2006, the company reported sales of $589.6 million, compared with $534.6 million in the same period last year, an increase of 10%. Net income was $13.4 million compared with $7.5 million last year.
Paul R. Kuhn, chairman, president and CEO, said, “The realignment of our Aerospace business at the beginning of 2005 is working and we are seeing both growth and improving margins for most of this segment. We have also experienced strong growth and improving margins in our Industrial Distribution segment. At the segment level, only Music showed evidence of weakness in the quarter.”
Industrial Distribution Segment
The Industrial Distribution segment had sales of $170.5 million in the second quarter, compared with $157.5 million the previous year, an increase of 8%. For the first half of the year, sales were $341.1 million, compared with $313.5 million the first half of 2005, with all the increase representing organic growth.
Kuhn said, “Sales to an expanding book of national account business grew at approximately twice the rate of the base business. Overall, U.S. industrial activity remained a positive factor for the segment despite the dampening effect of multiple interest rate increases by the Federal Reserve. The West Region remained the strongest contributor with robust sales in the mining, cement and wallboard industries, but noted a slowdown in the roofing industry.
“The region also benefited from continued activity in energy exploration and production. The Central Region also produced good sales activity with the food processing industry contributing solidly. Sales to OEM customers provided strength in the East Region. The company continues to review acquisition opportunities that would expand the geographic footprint of the segment while adding to the business base and enhancing the national account effort.”
Kaman is a North American industrial distributor serving the bearings, electrical/mechanical power transmission, fluid power, motion control and materials handling markets. The segment offers almost 2 million items, as well as value-added services, to a base of more than 50,000 customers spanning nearly every sector of industry. Segment operations are headquartered in Windsor, CT, and conducted from about 200 locations in the U.S., Canada and Mexico.
For details of Kaman’s other segments, or more on its second-quarter financials, click here.