Bloomfield, CT-based Kaman Corp. reported its 2017 second quarter fiscal results on Monday afternoon, which showed a continued year-over-year sales decline for its distribution segment — Kaman Industrial Technologies (KIT) — and continued sequential gains.
KIT's Q2 sales of $278.7 million were down 2.6 percent year-over-year, but up 2.6 percent from Q1. Those figures compare with Q1's 5.9 percent year-over-year sales gain and 5.6 percent sequential gain. KIT's Q2 operating profit of $15.9 million was up from $13.8 million a year earlier. KIT Q2 organic sales declined 2.3 percent year-over-year. Operating margins increased 90 base points year-over-year and 140 points from Q1 to a mark of 5.7 percent.
"As we have highlighted in recent quarters, we have taken steps to significantly strengthen Distribution's ability to drive improved performance," Kaman president and CEO Neal Keating said. "The success of these actions is reflected in the results for second quarter.'
Kaman's other business segment — Aerospace — had Q2 sales of $170.3 million, down 7.7 percent year-over-year, while operating profit of $26.3 million was down from $30.5 million a year earlier. Organic sales increased 2.3 percent year-over-year.
Overall, Kaman Corp. Q2 sales of $449.0 million were down 4.6 percent year-over-year and up 3.0 percent from Q1. Total profit of $13.5 million was down from $16.5 million a year earlier.
Kaman said it is "modestly lowering" its full year sales expectations for Distribution, while raising its outlook for operating margin.