Kaman Corp. (KAMN, Financial) filed Quarterly Report for the period ended 2010-07-02.
Kaman Corp. has a market cap of $604.5 million; its shares were traded at around $23.45 with a P/E ratio of 20.8 and P/S ratio of 0.5. The dividend yield of Kaman Corp. stocks is 2.4%.KAMN is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
S,G&A increased for the three months ended July 2, 2010 versus the comparable period in 2009 due to an increase in expense at our Industrial Distribution segment. This increase is due to the addition of S,G&A expense from the three Industrial Distribution acquisitions and an increase in organic S,G&A expenses. The organic S,G&A expense increases are due to the absence of certain one-time benefits related to employee furloughs taken in the prior year and an increase in variable costs such as sales commissions and other employee related costs resulting from the higher sales volume. Corporate expenses were relatively flat during the period with acquisition related costs of $0.4 million, a $0.5 million increase in stock compensation expense and a $0.5 million increase in group health insurance expense. These increases were substantially offset by a $1.3 million decrease in pension expense.
S,G&A increased for the six months ended July 2, 2010 versus the comparable period in 2009 due to an increase in our Corporate expenses and an increase in expense at our Industrial Distribution segment. The increase in our Corporate expenses was due to $1.3 million in acquisition related costs and a $2.2 million increase in incentive compensation expense. These increases were partially offset by a $1.1 million decrease in group health insurance expense and a $1.3 million decrease in pension and related costs.
In the second quarter of 2010, sales volume continued to increase from the levels experienced during the first quarter. Additionally, the acquired businesses have performed beyond our expectations and have been accretive to operating income. We have seen an increase in our operating margin for the six months ended July 2, 2010 to 3.2% from 1.8% during the same period in 2009. This increase is due to increased sales volume across all markets, higher operating margin on sales contributed by our acquired businesses, and the measured and appropriate cost reductions undertaken during 2009. This higher operating margin was achieved despite increased pressure on pricing as our customers focus on cost control. We will continue to focus on our business with an emphasis on cost reduction, margin improvements, and gaining market share. For the full year 2010, we now anticipate organic sales growth to be 10-13%; sales, inclusive of completed acquisitions, to be $800 million to $815 million; and full-year operating margin to be 3.0-3.3%.
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Kaman Corp. has a market cap of $604.5 million; its shares were traded at around $23.45 with a P/E ratio of 20.8 and P/S ratio of 0.5. The dividend yield of Kaman Corp. stocks is 2.4%.KAMN is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The increase in net sales for the three months and six months ended July 2, 2010 versus the comparable periods in 2009 was attributable to an increase in sales at our Industrial Distribution segment, partially offset by a decline in sales at our Aerospace segment. The impact of favorable foreign currency exchange rates on sales for the three months and six months ended July 2, 2010, was $0.1 million and $2.2 million, respectively.S,G&A increased for the three months ended July 2, 2010 versus the comparable period in 2009 due to an increase in expense at our Industrial Distribution segment. This increase is due to the addition of S,G&A expense from the three Industrial Distribution acquisitions and an increase in organic S,G&A expenses. The organic S,G&A expense increases are due to the absence of certain one-time benefits related to employee furloughs taken in the prior year and an increase in variable costs such as sales commissions and other employee related costs resulting from the higher sales volume. Corporate expenses were relatively flat during the period with acquisition related costs of $0.4 million, a $0.5 million increase in stock compensation expense and a $0.5 million increase in group health insurance expense. These increases were substantially offset by a $1.3 million decrease in pension expense.
S,G&A increased for the six months ended July 2, 2010 versus the comparable period in 2009 due to an increase in our Corporate expenses and an increase in expense at our Industrial Distribution segment. The increase in our Corporate expenses was due to $1.3 million in acquisition related costs and a $2.2 million increase in incentive compensation expense. These increases were partially offset by a $1.1 million decrease in group health insurance expense and a $1.3 million decrease in pension and related costs.
In the second quarter of 2010, sales volume continued to increase from the levels experienced during the first quarter. Additionally, the acquired businesses have performed beyond our expectations and have been accretive to operating income. We have seen an increase in our operating margin for the six months ended July 2, 2010 to 3.2% from 1.8% during the same period in 2009. This increase is due to increased sales volume across all markets, higher operating margin on sales contributed by our acquired businesses, and the measured and appropriate cost reductions undertaken during 2009. This higher operating margin was achieved despite increased pressure on pricing as our customers focus on cost control. We will continue to focus on our business with an emphasis on cost reduction, margin improvements, and gaining market share. For the full year 2010, we now anticipate organic sales growth to be 10-13%; sales, inclusive of completed acquisitions, to be $800 million to $815 million; and full-year operating margin to be 3.0-3.3%.
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