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The eBearing News
November 1, 2006
Kaydon Reports Third Quarter 2006 Results
copyright © 2006 eBearing Inc.
Kaydon Corp. (USA; NYSE:
KDN)
reported third quarter 2006 financial results, for the period ended September 30, 2006.
Sales in the quarter set a new record, reaching $99.7 million, up 16% over 2005's $85.9 million.
The company said sales were stronger across most product lines, including specialty bearings,
specialty balls, linear deceleration products, sealing products, air and liquid filters,
and metalforming equipment.
Operating income also reached a new high, of $24.9 million (25% of sales), up 43% over 2005's
$17.4 million (20.3% of sales).
Similarly, net income from continuing operations reached $17.6 million
(17.6% of sales) from $11.6 million (13.6% of sales) in 2005. 2005's income is $37.2 million
if the now-divested Power and Data Transmission Products Group results are included.
Kaydon's order backlog at the end of the quarter was $155.0 million, from $127.2 million at the
end of third quarter 2005. The company said third quarter sales are seasonally lower each year due to
business patterns.
The sale of its Power and Data Transmission Products Group, considered a discontinued operation,
netted $25.4 million in the quarter.
Specialty bearing production at plants in the U.S. and Mexico received $5.5 million additional investment
in third quarter, driven by demand from the wind energy market. By the end of 2007, the program is
forecast to invest $30 million to expand specialty bearing production.
Another bearing-related manufacturing program is scheduled to begin in the fourth quarter
and continue through 2009. In this newest at program, Kaydon plans to invest at least $7.5 million,
expanding production of specialty bearings for the medical and security equipment markets.
Kaydon operates North American bearing plants in Muskegon, Michigan; Sumter, South Carolina;
Mocksville, North Carolina; and Monterrey, Mexico.
Bearing manufacturing and sales are part of Kaydon's Friction and Motion Control segment. In
third quarter 2006, the segment recorded sales of $57.5 million, from
$48.2 million in 2005. Operating income hit $16.9 million in 2006 from $11.6 million in 2005.
President and CEO, Brian Campbell, said: "The excellent sales growth and positive earnings momentum
we experienced during third quarter reflect not only continued strong demand for our performance-critical
products that meet demanding customer needs, but also the operational execution of the Kaydon team."
Mr. Campbell was upbeat about the future, saying: "Our current order backlog and incoming
order flow make us highly confident that we will achieve record annual sales in 2006. Looking beyond
fourth quarter, we are confident that Kaydon will continue its sales and earnings growth in 2007. Company-wide
manufacturing initiatives, together with expanded productive capacity, and new product development and
market share programs, will all support our growth and operating performance going forward."
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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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