Kaman aerospace segment sales down 0.39% in Q3

Third Quarter 2013 Highlights:

Neal J. Keating, Chairman, President and Chief Executive Officer, stated, “Broad based strength across Aerospace and improved profit performance at Distribution led to very strong results for our third quarter.

“Distribution delivered an operating profit margin of 5.4% in the third quarter, a 30 basis point sequential improvement from 5.1% in the second quarter. While this was slightly below our expectations, due to lower organic growth rates than we had anticipated, we are pleased with the sequential improvement in a challenging industrial environment. During the quarter we saw several encouraging signs, including achieving positive organic growth rates in September for the first time in the past four quarters, and are well positioned to capitalize as organic sales continue to improve.

“Aerospace continues to deliver strong operating profit margins. For the third quarter operating profit was 18.3%, up from 17.8% in the second quarter and 16.1% in the prior year. We benefited from the contributions of our various SH-2G helicopter programs and direct commercial sales of the JPF to foreign governments. The increase in operating margin was achieved due to favorable product mix, demonstrating the benefits of the diversity of our portfolio.

“Overall, we are very pleased with our results through nine months of the year and believe it highlights the strength of our product diversification and our commitment to improved operational performance across the company."

Aerospace Segment

Sales were $150.7 million, a decrease of $0.6 million from sales of $151.3 million in the third quarter of 2012. Sales increased $26.3 million related to higher shipments of our JPF to foreign customers and the recognition of revenue under the SH-2G(I) contract with New Zealand. These increases were offset by a decrease of $26.9 million due to lower JPF shipments to the United States Government.

Operating income for the third quarter of 2013 was $27.6 million, compared to operating income of $24.4 million in the third quarter of 2012. The operating margin in this year's third quarter was 18.3%, compared to 16.1% in the prior year. The improvement is due to gross profit attributable to the revenue recognized under the SH-2G(I) program and higher commercial and military bearing product sales.

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Kaman