Earnings Roundup: Kaman Industrial Technologies, Barnes Distribution and Simpson Manufacturing
Industrial Distribution staff -- Industrial Distribution, 5/2/2008 6:16:00 AM
Two distributors and a fastener manufacturer, Kaman Industrial Technologies, Barnes Distribution and Simpson Manufacturing Co. Inc., posted first-quarter sales and earnings results.Kaman Industrial Technologies
First-quarter sales rose 5 percent to $182.2 million for the Bloomfield, Conn.-based MRO distributor, compared with $173.4 million during the same period last year.
Quarterly operating income of $9.1 million was up 4.4 percent, compared with $8.7 million during the first quarter of 2007.
“[Kaman Industrial Technologies] increased both its revenue and operating profits despite weakness in certain sectors of the economy and increased expenses associated with supporting our national account initiative,” said Neal Keating, chairman, president and CEO of parent company Kaman Corp. “Our success with these accounts not only drives revenue growth, but also increases our participation in less cyclical sectors of the economy. We are also benefiting from increases in market share, as we prove ourselves to be the partner of choice for world-class companies who need service across their national footprint. An important step for us in expanding our geographic reach was the purchase of Industrial Supply Corp., which occurred early in the second quarter. ISC brings a strong reputation for customer service, a very experienced management team and gives us a stronger presence in the important Virginia and North Carolina markets."
Kaman ranked 17th on INDUSTRIAL DISTRIBUTION’s 2007 Big 50 list of distributors, with 2006 sales of $665.4 million.
Barnes Distribution
First-quarter sales for the Bristol, Conn.-based MRO distributor rose 0.9 percent to $141 million, compared with $139.8 million during the same period last year.
Quarterly operating profit rose 12.9 percent to $7 million, compared with $6.2 million during the first quarter of 2007.
Barnes said organic sales slid 4 percent due to “softness in certain markets in North America.” The company said results did not meet expectations “as the European business did not realize the necessary operational improvement during the first quarter.”
“Improved profit levels in the first quarter and our continuing commitment to superior customer service warrant our confidence that we can realize improvement throughout the year. However, with slowing economic growth anticipated for the United States and disruption in our European business, the expectation for Barnes Distribution’s full-year operating margin is now in the 6 percent to 8 percent range,” the company said in a statement.
Barnes ranked 20th on the 2007 Big 50, with 2006 sales of $527 million.
Simpson Manufacturing Co.
The residential construction slump took its toll on the Pleasanton, Calif.-based fastener manufacturer’s first-quarter sales, which slipped 13.2 percent to $167.7 million, compared with $193.2 million during the same period last year.
Net income plummeted 51.7 percent to $8.4 million, compared with $17.3 million during the first quarter of 2007.
The company said sales for its Simpson Strong-Tie fastener division posted the largest decline, as sales to contractor distributors, home improvement retailers and dealer distributors decreased across all major product lines. Its Swan Secure product line, acquired in July 2007, accounted for approximately 5 percent of first-quarter sales.
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