Kadant Inc. (KAI, Financial) filed Quarterly Report for the period ended 2009-10-03.
Kadant Inc. is a leading supplier of a range of products and systems for the global papermaking and paper-recycling industries, including de-inking systems, stock-preparation equipment, water-management systems, and papermaking accessories. Through its majority-owned Thermo Fibergen subsidiary, the company also develops and commercializes composite building materials produced from natural fiber and recycled plastic. Kadant is a public subsidiary of Thermo Electron Corporation.(Press Release) Kadant Inc. has a market cap of $183.3 million; its shares were traded at around $14.94 with a P/E ratio of 55.3 and P/S ratio of 0.6. Kadant Inc. had an annual average earning growth of 21.3% over the past 5 years.
Revenues decreased to $53.7 million in the third quarter of 2009 from $83.7 million in the third quarter of 2008, a decrease of $30.0 million, or 36%. Revenues in the third quarter of 2009 include a $2.4 million, or 3%, decrease from the unfavorable effects of currency translation. Excluding the effects of currency translation, revenues decreased $27.6 million, or 33%, in the third quarter of 2009 due to a decrease in revenues in all of our major product lines as our customers continued to take steps to control operating costs, including closing paper mills, increasing downtime, deferring maintenance and upgrades, and delaying or canceling projects. Excluding the effects of currency translation, the largest revenue declines in the third quarter of 2009 were in our fluid-handling product line, which decreased $10.7 million, or 39%, and our stock-preparation equipment product line, which decreased $10.3 million, or 34%. By geographic region, the largest revenue declines in the third quarter of 2009 compared to the prior year period were in Europe and North America.
Papermaking Systems Segment. Revenues at the Papermaking Systems segment decreased to $52.3 million in the third quarter of 2009 from $82.0 million in the third quarter of 2008, a decrease of $29.7 million, or 36%. Revenues in the 2009 period include a $2.4 million, or 3%, decrease from the unfavorable effects of currency translation.
Revenues from the segment s stock-preparation equipment product line decreased $10.7 million, or 35%, in the third quarter of 2009 compared to the third quarter of 2008, including a $0.4 million, or 1%, decrease from the unfavorable effect of currency translation. Excluding the effect of currency translation, revenues from the segment s stock preparation equipment product line decreased $10.3 million, or 34%, primarily due to decreases in stock-preparation equipment sales of $5.0 million, or 38%, in Europe, $3.7 million, or 35%, in North America, and $1.6 million, or 23%, in China. These significant decreases were due to a reduction in orders as major manufacturers cancelled or postponed projects due to the current economic environment.
Selling, general, and administrative expenses as a percentage of revenues increased to 36% in the third quarter of 2009 from 29% in the third quarter of 2008. Selling, general, and administrative expenses decreased $4.8 million, or 20%, to $19.6 million in the third quarter of 2009 from $24.4 million in the third quarter of 2008. This decrease includes a $0.7 million decrease from the favorable effect of currency translation and a $4.1 million net decrease primarily due to expense reductions throughout the Company, including our recent restructuring efforts that reduced the number of employees and merged our sales forces in certain markets.
We recorded restructuring costs of $0.5 million in the third quarter of 2009, which consisted of severance and associated charges of $0.2 million related to the reduction of 6 full-time positions in Canada and France and $0.3 million related to the consolidation of our water-management manufacturing facility in New York into our facilities in Massachusetts and Mexico. All of these items were in the Papermaking Systems segment. We estimate annualized savings of $0.2 million in cost of revenues and $0.2 million in selling, general, and administrative expenses from the 2009 restructuring actions.
Read the The complete ReportKAI is in the portfolios of NWQ Managers of NWQ Investment Management Co.
Kadant Inc. is a leading supplier of a range of products and systems for the global papermaking and paper-recycling industries, including de-inking systems, stock-preparation equipment, water-management systems, and papermaking accessories. Through its majority-owned Thermo Fibergen subsidiary, the company also develops and commercializes composite building materials produced from natural fiber and recycled plastic. Kadant is a public subsidiary of Thermo Electron Corporation.(Press Release) Kadant Inc. has a market cap of $183.3 million; its shares were traded at around $14.94 with a P/E ratio of 55.3 and P/S ratio of 0.6. Kadant Inc. had an annual average earning growth of 21.3% over the past 5 years.
Highlight of Business Operations:
For 2009, we expect revenues and earnings per share from continuing operations, which exclude the results from our discontinued operation, as follows: For the fourth quarter of 2009, we expect to report diluted earnings per share of $.02 to $.04 from continuing operations, on revenues of $55 to $57 million. For 2009, we expect to report a diluted loss per share of $.30 to $.32 from continuing operations, on revenues of $224 to $226 million, revised from our previous guidance of diluted loss per share of $.60 to $.65, on revenues of $210 to $220 million.Revenues decreased to $53.7 million in the third quarter of 2009 from $83.7 million in the third quarter of 2008, a decrease of $30.0 million, or 36%. Revenues in the third quarter of 2009 include a $2.4 million, or 3%, decrease from the unfavorable effects of currency translation. Excluding the effects of currency translation, revenues decreased $27.6 million, or 33%, in the third quarter of 2009 due to a decrease in revenues in all of our major product lines as our customers continued to take steps to control operating costs, including closing paper mills, increasing downtime, deferring maintenance and upgrades, and delaying or canceling projects. Excluding the effects of currency translation, the largest revenue declines in the third quarter of 2009 were in our fluid-handling product line, which decreased $10.7 million, or 39%, and our stock-preparation equipment product line, which decreased $10.3 million, or 34%. By geographic region, the largest revenue declines in the third quarter of 2009 compared to the prior year period were in Europe and North America.
Papermaking Systems Segment. Revenues at the Papermaking Systems segment decreased to $52.3 million in the third quarter of 2009 from $82.0 million in the third quarter of 2008, a decrease of $29.7 million, or 36%. Revenues in the 2009 period include a $2.4 million, or 3%, decrease from the unfavorable effects of currency translation.
Revenues from the segment s stock-preparation equipment product line decreased $10.7 million, or 35%, in the third quarter of 2009 compared to the third quarter of 2008, including a $0.4 million, or 1%, decrease from the unfavorable effect of currency translation. Excluding the effect of currency translation, revenues from the segment s stock preparation equipment product line decreased $10.3 million, or 34%, primarily due to decreases in stock-preparation equipment sales of $5.0 million, or 38%, in Europe, $3.7 million, or 35%, in North America, and $1.6 million, or 23%, in China. These significant decreases were due to a reduction in orders as major manufacturers cancelled or postponed projects due to the current economic environment.
Selling, general, and administrative expenses as a percentage of revenues increased to 36% in the third quarter of 2009 from 29% in the third quarter of 2008. Selling, general, and administrative expenses decreased $4.8 million, or 20%, to $19.6 million in the third quarter of 2009 from $24.4 million in the third quarter of 2008. This decrease includes a $0.7 million decrease from the favorable effect of currency translation and a $4.1 million net decrease primarily due to expense reductions throughout the Company, including our recent restructuring efforts that reduced the number of employees and merged our sales forces in certain markets.
We recorded restructuring costs of $0.5 million in the third quarter of 2009, which consisted of severance and associated charges of $0.2 million related to the reduction of 6 full-time positions in Canada and France and $0.3 million related to the consolidation of our water-management manufacturing facility in New York into our facilities in Massachusetts and Mexico. All of these items were in the Papermaking Systems segment. We estimate annualized savings of $0.2 million in cost of revenues and $0.2 million in selling, general, and administrative expenses from the 2009 restructuring actions.
Read the The complete ReportKAI is in the portfolios of NWQ Managers of NWQ Investment Management Co.
