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The eBearing News
August 25, 2004
Kaydon Reports Second
Quarter 2004 Results
copyright © 2004 eBearing Inc.
Kaydon Corporation (USA) reported stronger sales and earnings for second quarter 2004, reflecting the
continued strength of a general manufacturing recovery in all but sealing and power and data
transmission products.
Second quarter sales were USD $84.4 million, up almost 11% over 2003's $76.1 million.
Net income was $9.9 million, climbing almost 20% from $8.3 million in 2003. Earnings, said Kaydon,
were modestly affected by foreign exchange rate effects.
Founded in 1941, Kaydon now manufactures standard and custom-engineered bearings, hydraulic cylinders, slip
rings and filters, supplying a broad and diverse group of industrial, aerospace, medical and electronic equipment,
and aftermarket customers. In the bearing industry, Kaydon is a key manufacturer of slip-ring and specialty
bearing products sold to security, military and industrial markets for industrial and aerospace applications.
The company also includes Cooper Roller Bearing (UK), a leading manufacturer of split roller bearings,
thrust bearings and other custom bearings.
Kaydon's Friction and Motion Control division is home to the bearing operations. Seals and slip rings
are also carried by the company's three other divisions, Velocity Control Products, Sealing Products,
Power and Data Transmission Products, and Other.
Friction and Motion Control division sales are by far the largest within Kaydon, more than triple the sales of
its next-largest division. F&MC sales to external customers were $42.6 million in second quarter,
up more than 19% from $35.7 million in second quarter 2003.
More importantly, the division's operating income rose to $11.1 million from $7.0 million in 2003.
Kaydon attributed F&MC's sales performance to increased demand for custom-engineered bearings and split bearing
products from various specialty electronics, machinery, heavy equipment, and industrial markets.
Profits were helped by the increased sales, as the profitability for the bearing business is very volume
sensitive, and favorable product mix.
President and CEO, Brian Campbell, told analysts, "All in all, I think it was a good quarter across
the board." He continued, "We believe we've seen not only a stabilization, but also a strong turnaround
of the general industrial environment."
In addition to the financial results, Kaydon was able to announce the so-called "Transactions Lawsuit"
is ended, that the complainants will not file a Petition for Certiorari in their only
remaining appeal venue, the United States Supreme Court. Along the way, Kaydon has won summary judgments, and
plaintiffs have exhausted their avenues of appeal, submitting a letter to the court stating they
will not appeal the latest federal appeals court judgment in favor of Kaydon.
Dragging on for over eight years and costing Kaydon over $20 million to fight, the $700 million Transactions
Lawsuit was complicated and does not bear
repeating. It essentially involved a number of charges related to Keene Corporation, the spinoff of
various divisions, including Kaydon, and financial responsibility for asbestos litigation. The Transactions
Lawsuit was covered in detail by eBearing's March 19, 2003 article reporting Kaydon's summary judgment.
• the March 19, 2003 "Transactions Lawsuit" article:
Kaydon wins dismissal
"It appears that case is finally concluded," said Mr. Campbell. "Kaydon has always believed
the lawsuit was entirely without merit."
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- by Bruce A. Carr
from individual research,
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
trademarks of eBearing Inc.
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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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