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Kaydon Corp. Reports Operating Results (10-Q)

August 03, 2010 | About:
10qk

10qk

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Kaydon Corp. (KDN) filed Quarterly Report for the period ended 2010-07-03.

Kaydon Corp. has a market cap of $1.26 billion; its shares were traded at around $37.8 with a P/E ratio of 21.6 and P/S ratio of 2.9. The dividend yield of Kaydon Corp. stocks is 1.9%. Kaydon Corp. had an annual average earning growth of 6.6% over the past 10 years.KDN is in the portfolios of John Keeley of Keeley Fund Management, Columbia Wanger of Columbia Wanger Asset Management, Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, Diamond Hill Capital of Diamond Hill Capital Management Inc, Bruce Kovner of Caxton Associates.
This is the annual revenues and earnings per share of KDN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of KDN.


Highlight of Business Operations:

Selling, general and administrative expenses were $19.7 million or 16.2 percent of sales during the second quarter of 2010, compared to $19.1 million or 19.5 percent of sales in the second quarter of 2009. The $0.6 million increase was attributable to $2.6 million for costs incurred for unconsummated corporate development efforts, a $1.6 million increase in accrued incentive compensation expense compared to no accrual in the prior year, and $0.2 million of costs related to the first phase of our manufacturing consolidation program (see Note 13 to the Consolidated Condensed Financial Statements). Partially offsetting these cost increases is a net increase in gains of $2.2 million associated with changes to certain postretirement benefit programs compared to the prior second quarter, and $1.6 million in other net cost reductions as the prior year included $1.0 million of unfavorable one-time severance and redundancy costs.

Selling, general and administrative expenses were $41.8 million or 17.3 percent of sales during the first half of 2010, compared to $39.4 million or 18.9 percent of sales in the first half of 2009. The $2.4 million increase was attributable to a $3.0 million increase in accrued incentive compensation expense compared to no incentive compensation accrual in the prior first half, $2.6 million for costs incurred for unconsummated corporate development efforts and $0.2 million of costs related to the first phase of our manufacturing consolidation program (see Note 13 to the Consolidated Condensed Financial Statements). Partially offsetting these cost increases are a $2.2 million increase in gains associated with changes to certain postretirement benefit programs, and $1.2 million of other net cost reductions.

During the second quarter of 2010 operating income for the segment increased $10.6 million to $20.3 million compared to the second quarter of 2009. Of this increase, $10.7 million was attributable to increased sales volume and product mix changes, $1.7 million was due to net cost reductions and $0.7 million was related to severance and other charges from the second quarter of 2009 that did not recur in the second quarter of 2010. These operating income increases were partly offset by $1.2 million in reduced pricing, $0.7 million in costs related to the first phase of our manufacturing consolidation program (see Note 13 to the Consolidated Condensed Financial Statements) and $0.6 million from the unfavorable effects of changes in foreign currency rates.

During the first half of 2010 sales from our Friction Control Products reporting segment increased $23.1 million to $159.5 million compared to the first half of 2009. The increase was due to $13.7 million in increased sales to wind energy customers and a net increase in sales volumes of $11.7 million to all other end markets, partially offset by $2.3 million in price declines to non-wind energy customers. The $13.7 million increase in sales to wind energy customers was comprised of $26.8 million in increased volume, partially offset by $13.1 million in reduced pricing contractually tied to raw material cost decreases.

During the first half of 2010 operating income for the segment increased $14.6 million to $36.9 million compared to the first half of 2009. Comprising this increase was $15.9 million related to sales volume and product mix changes, $2.1 million for net cost reductions and $0.8 million for severance and other charges from the first half of 2009 that did not recur in the first half of 2010, partially offset by $2.3 million in reduced pricing, $1.2 million from the unfavorable effects of changes in foreign currency rates and $0.7 million in costs related to the first phase of our manufacturing consolidation program (see Note 13 to the Consolidated Condensed Financial Statements).

During the second quarter of 2010 we paid cash dividends of $6.1 million compared to $5.7 million in the second quarter of 2009, reflecting an increased dividend rate of $0.18 per common share paid in the second quarter of 2010 compared to the dividend rate of $0.17 per common share paid in the second quarter of 2009. First half of 2010 dividends totaled $12.1 million compared to $11.5 million for the first half of 2009. During the second quarter of 2010 we also paid $1.3 million to repurchase 33,817 shares of common stock. First half of 2010 share repurchases

Read the The complete Report

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