Kaman Corp. Earnings Just Meet Wall Street Estimates
Feb 26, 2013 (The Hartford Courant - McClatchy-Tribune Information Services via COMTEX) --
Kaman Corp. on Monday reported higher earnings for the fourth quarter and the whole year from increased sales in both its aerospace and its distribution divisions.
The company also released expectations for 2013 that call for stronger sales and wider operating margins in both divisions.
The Bloomfield-based manufacturer and distributor posted $14.2 million in net earnings for the fourth quarter, a 42.2 percent increase from the same period last year.
Kaman's adjusted net earnings per share -- $0.61 for the fourth quarter -- just met Wall Street estimates that pegged the company at $0.60 for the quarter.
"We expect that 2013 will be another year of progress toward our long-term goals," Neal J. Keating, the company's chief executive, said in a statement. "While we anticipate some modest near term headwinds from both reduced DOD spending and industrial market conditions, our team at Kaman is prepared to manage through these issues, continuing to deliver long-term shareholder value."
Sales for the fourth quarter hit $399.3 million, up 6.8 percent from the same quarter last year.
A decline in industrial production during the second half of the year lowered revenues in the second half of the year, Keating said, causing organic sales for the division to sink 6.5 percent. The division, however, reported an overall increase in sales because of revenues added from two distribution businesses the company acquired in 2012 -- Zeller Corp. and Florida Bearings Inc.
On the aerospace side, strong sales of fuzes -- a mechanical or electrical ignition device -- and increased demand for bearing products more than balanced out soft sales in the company's work in Black Hawk, unmanned K-MAX and lower missile fuzing programs.
For the year, the company earned $55.0 million, up 7.6 percent from 2011. The adjusted net earnings per share met Wall Street estimates of $2.18 for 2012. The company posted $1.6 billion in sales in 2012, up 7.8 percent from 2011.
The company on Monday also released 2013 expectations for sales and margins. The aerospace segment should generate, at midpoint, $627 million in sales, up 8 percent from 2012. The distribution division should generate about $1.1 billion in sales, up 8.5 percent from 2012.
William C. Denninger, the company's chief financial officer said that in 2013 the aerospace division should "see higher sales as we move closer to full rate production on several ramp up programs. At distribution, we will continue to monitor market conditions, and will adjust our cost base as necessary to support profit margins."
Estimates on operating profit margins for Kaman's aerospace division center around 16.2 percent, and operating profit estimates for the distribution division center around 5.4 percent.
The company filed its earnings after the close of the New York Stock Exchange. Kaman stock closed at $35.22 a share, down 2.25 percent.
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