Kaydon Corp. (KDN, Financial) filed Quarterly Report for the period ended 2009-07-04.
Kaydon Corporation is a leading designer and manufacturer of custom-engineered critical performance products for a broad and diverse customer base.The Company\'s principal products include bearing systems and components and filters and filter housings but also custom rings shaft seals specialty retaining rings specialty balls hydraulic cylinders slip-rings fuel cleansing systems industrial presses and metal alloy products. Kaydon Corp. has a market cap of $1.04 billion; its shares were traded at around $31.16 with a P/E ratio of 20.8 and P/S ratio of 1.9. The dividend yield of Kaydon Corp. stocks is 2.2%. Kaydon Corp. had an annual average earning growth of 1.3% over the past 10 years.
On a reporting segment basis, operating income from our Friction Control Products reporting segment during the second fiscal quarter of 2009 was $9.8 million compared to $22.1 million in the second fiscal quarter of 2008. The $12.3 million decrease was principally attributable to the effect of the lower sales volume mentioned above. In addition, a $0.4 million adverse effect of changes in product mix resulting from lower year-over-year sales to higher margin industrial markets and net higher costs of $2.6 million, were fully offset by a $2.7 million benefit from increased pricing and a $0.3 million favorable effect of exchange rate changes. The higher costs include increased depreciation associated with our investment in capacity to support the wind energy growth initiative, increased pension expense, and $0.7 million of severance and redundancy costs incurred in the second fiscal quarter of 2009. We expect the unfavorable impact of product mix resulting from weak industrial markets and the increased depreciation and pension expense to continue for the remainder of 2009.
The Sealing Products reporting segment contributed $0.8 million to our operating income during the second fiscal quarter of 2009 as compared to $1.5 million during the comparable period last year. The $0.7 million decrease is attributable to the effect of lower sales volume of $1.0 million and the impact of adverse changes in product mix associated with proportionately lower sales of higher margin industrial seals of $0.4 million that were partially offset by a $0.2 million benefit from increased pricing and net cost reductions of $0.5 million.
Net income for the second fiscal quarter of 2009 was $8.4 million or $0.25 per share on a diluted basis as compared to the adjusted net income for the second fiscal quarter of 2008 of $19.6 million, or $0.63 per share on a diluted basis. Second fiscal quarter 2008 results have been adjusted to reflect the required retrospective application of two Financial Accounting Standards Board Staff Positions which were effective January 1, 2009, resulting in the recording of additional non-cash interest expense of $1.1 million, $0.7 million net of tax, in the second quarter of 2008. These required adjustments reduced previously reported second fiscal quarter 2008 basic earnings per share by $0.04 and diluted earnings per share by $0.01.
Specifically, sales in our Friction Control Products reporting segment were $136.4 million during the first fiscal half of 2009 as compared with $160.9 million during the first fiscal half of 2008, a decrease of $24.5 million or 15.2 percent. Excluding volume and pricing gains to wind energy customers of $5.7 million, sales to all other markets in the first fiscal half of 2009 decreased by $30.2 million from the comparable period last year. This decline was due to volume declines of $27.6 million and the adverse effects of exchange rate changes of $4.5 million, which were only partially offset by a $1.9 million effect of increased pricing. The volume declines were attributable to weak industrial markets and a decrease in sales to the defense market, largely due to timing as the prior years sales supporting certain military programs have not thus far been replaced by sales supporting this years programs.
Net income for the first fiscal half of 2009 was $18.5 million, or $0.55 per share on a diluted basis as compared to the adjusted net income for the first fiscal half of 2008 of $35.0 million, or $1.15 per share on a diluted basis. First fiscal half 2008 results have been adjusted to reflect the required retrospective application of two Financial Accounting Standards Board Staff Positions which were effective January 1, 2009, resulting in the recording of additional non-cash interest expense of $3.1 million, $2.0 million net of tax. These required adjustments reduced previously reported first fiscal half 2008 basic earnings per share by $0.09 and diluted earnings per share by $0.01.
Read the The complete ReportKDN is in the portfolios of John Keeley of Keeley Fund Management, Ron Baron of Baron Funds.
Kaydon Corporation is a leading designer and manufacturer of custom-engineered critical performance products for a broad and diverse customer base.The Company\'s principal products include bearing systems and components and filters and filter housings but also custom rings shaft seals specialty retaining rings specialty balls hydraulic cylinders slip-rings fuel cleansing systems industrial presses and metal alloy products. Kaydon Corp. has a market cap of $1.04 billion; its shares were traded at around $31.16 with a P/E ratio of 20.8 and P/S ratio of 1.9. The dividend yield of Kaydon Corp. stocks is 2.2%. Kaydon Corp. had an annual average earning growth of 1.3% over the past 10 years.
Highlight of Business Operations:
quarter of 2009 as compared with $86.8 million during the second fiscal quarter of 2008, a decrease of $22.6 million or 26.0 percent. Excluding an increase in sales to wind energy customers of $0.6 million, sales in the second fiscal quarter of 2009 decreased by $23.2 million compared to the second fiscal quarter of 2008. This decrease was attributable to sales volume declines of $22.4 million and the adverse effect of exchange rate changes of $1.8 million, which were only partially offset by a $1.0 million positive effect from increased pricing. The sales volume declines primarily reflect weak business conditions in industrial markets due to the global economic recession and a decrease in sales to the defense market, largely attributable to timing, as the prior years sales supporting certain military programs have not thus far been replaced by sales supporting this years programs.On a reporting segment basis, operating income from our Friction Control Products reporting segment during the second fiscal quarter of 2009 was $9.8 million compared to $22.1 million in the second fiscal quarter of 2008. The $12.3 million decrease was principally attributable to the effect of the lower sales volume mentioned above. In addition, a $0.4 million adverse effect of changes in product mix resulting from lower year-over-year sales to higher margin industrial markets and net higher costs of $2.6 million, were fully offset by a $2.7 million benefit from increased pricing and a $0.3 million favorable effect of exchange rate changes. The higher costs include increased depreciation associated with our investment in capacity to support the wind energy growth initiative, increased pension expense, and $0.7 million of severance and redundancy costs incurred in the second fiscal quarter of 2009. We expect the unfavorable impact of product mix resulting from weak industrial markets and the increased depreciation and pension expense to continue for the remainder of 2009.
The Sealing Products reporting segment contributed $0.8 million to our operating income during the second fiscal quarter of 2009 as compared to $1.5 million during the comparable period last year. The $0.7 million decrease is attributable to the effect of lower sales volume of $1.0 million and the impact of adverse changes in product mix associated with proportionately lower sales of higher margin industrial seals of $0.4 million that were partially offset by a $0.2 million benefit from increased pricing and net cost reductions of $0.5 million.
Net income for the second fiscal quarter of 2009 was $8.4 million or $0.25 per share on a diluted basis as compared to the adjusted net income for the second fiscal quarter of 2008 of $19.6 million, or $0.63 per share on a diluted basis. Second fiscal quarter 2008 results have been adjusted to reflect the required retrospective application of two Financial Accounting Standards Board Staff Positions which were effective January 1, 2009, resulting in the recording of additional non-cash interest expense of $1.1 million, $0.7 million net of tax, in the second quarter of 2008. These required adjustments reduced previously reported second fiscal quarter 2008 basic earnings per share by $0.04 and diluted earnings per share by $0.01.
Specifically, sales in our Friction Control Products reporting segment were $136.4 million during the first fiscal half of 2009 as compared with $160.9 million during the first fiscal half of 2008, a decrease of $24.5 million or 15.2 percent. Excluding volume and pricing gains to wind energy customers of $5.7 million, sales to all other markets in the first fiscal half of 2009 decreased by $30.2 million from the comparable period last year. This decline was due to volume declines of $27.6 million and the adverse effects of exchange rate changes of $4.5 million, which were only partially offset by a $1.9 million effect of increased pricing. The volume declines were attributable to weak industrial markets and a decrease in sales to the defense market, largely due to timing as the prior years sales supporting certain military programs have not thus far been replaced by sales supporting this years programs.
Net income for the first fiscal half of 2009 was $18.5 million, or $0.55 per share on a diluted basis as compared to the adjusted net income for the first fiscal half of 2008 of $35.0 million, or $1.15 per share on a diluted basis. First fiscal half 2008 results have been adjusted to reflect the required retrospective application of two Financial Accounting Standards Board Staff Positions which were effective January 1, 2009, resulting in the recording of additional non-cash interest expense of $3.1 million, $2.0 million net of tax. These required adjustments reduced previously reported first fiscal half 2008 basic earnings per share by $0.09 and diluted earnings per share by $0.01.
Read the The complete ReportKDN is in the portfolios of John Keeley of Keeley Fund Management, Ron Baron of Baron Funds.
