Kaman Industrial Lowers Outlook After Q2 Sales Bump Up, Profit Dips

Kaman Corp.'s profit jumped 30 percent, but lower than expected organic growth in its Distribution segment led to an overall sales decrease.

Kaman Corp. reported its 2015 second quarter financial earnings on Thursday for the period ended June 3. The company's distribution segment, Kaman Industrial Technologies, had total sales of $304.05 million, a 2.0 percent increase over last year. Meanwhile, operating profit decreased 4.8 percent to $15.4 million as organic sales per day decreased 0.8 percent.

For the first six months of 2015, Distribution sales were up 10.5 percent over last year to $304.05 million.

Kaman Industrial was No. 20 on Industrial Distribution's 2014 Big 50 List.

Kaman's Aerospace segment had Q2 sales of $142.8 million, down 8.1 percent from a year ago, while operating profit increased 9.3 percent to $29.15 million. For the first six months of 2015, Aerospace sales 

With the two segments combined, Kaman Corp. had total Q2 sales of $446.32 million, a 1.5 percent decrease from last year. Total profit of $21.69 million was 30.9 percent increase over Q2 2015.

"Our top line performance was impacted by lower than expected organic sales at Distribution, while at Aerospace we are being impacted by the timing of program deliveries driven by customer demand and the impact of foreign currency exchange rates," said Robert Starr, Kaman CEO.

Kaman also lowered its full year outlook, expecting 2015 Distribution sales of $1.2 million to $1.225 million with an operating margin of 4.8-5.0 percent. Aerospace 2015 sales are expected to be between $610 million to $620 million, with operating margins of 18.1-18.4 percent.