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The eBearing News
December 9, 2003
Kaydon Reports Third Quarter 2003 Results
copyright © 2003 eBearing Inc.
Kaydon Corporation (USA) reported third quarter 2003 financial results.
Net sales for the quarter were USD $68.0 million, down slightly from third quarter 2002's $68.5 million.
Kaydon said sales were stronger for specialty bearings, linear deceleration products, rings and seals,
and filtration elements utilized in various defense and industrial applications. But those improvements
were more than offset by weakened demand from the company's other key markets, including specialty
electronic manufacturing equipment, power generation equipment and medical equipment markets.
Operating income for third quarter was flat from 2002, at $12.8 million, while the operating margin
picked up slightly to 18.9% from 18.7%.
Net income hit $7.2 million for the quarter, down from $8.3 million earned in third quarter 2002.
Kaydon said third quarter net income reflects the full effect of the company's May 2003 issuance
of $200 million in 4% Contingent Convertible Senior Subordinated Notes due 2023. S&P rated the notes
as BB-, while S&P rated them at Ba3.
In the bearing business, Kaydon continued its ongoing restructuring of the Specialty Bearings
Group to, "enhance operating performance and balance manufacturing utilization."
This quarter, the restructuring produced a $100,000 charge for equipment relocation. Kaydon said
the Specialty Bearings Group will face more restructuring and layoffs in the fourth quarter, predicting
$600,000 in charges. The restructuring efforts which have gone on through 2003 should
improve Specialty Bearings' bottom line by $2.0 million per year from 2004 onward.
Kaydon President and CEO, Brian Campbell, said, "Our businesses continue to face a challenging
economic environment. While results over the past three quarters show encouraging signs for most of our
markets, the outlook for North American and European general manufacturing economies still remains unclear.
Our businesses continue to make the right investments and right-size manufacturing and marketing efforts
to make sure that Kaydon is well positioned for the expected manufacturing upturn."
Mr. Campbell continued, "Although we remain cautious about the breadth and timing of a manufacturing
rebound, we are encouraged by recent strength in order entry and positive indications from customers
versus a year ago."
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- by Bruce A. Carr
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tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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