Kaman unit announces multi-year contract with major engine OEM » 06:3408/0708/07/20
Kaman Composites -…
Kaman Composites - Vermont, a subsidiary of Kaman, announced that it has entered into a new Long Term Agreement with a major engine OEM to manufacture components for both existing production and newly developed engine programs. The components will be industrialized and manufactured at Kaman's facilities in Bennington, Vermont, with initial deliveries expected by the end of 2020. The agreement has a potential value of $118M.
|Over a month ago|
Kaman reports Q1 EPS 48c, consensus 32c » 16:3205/1105/11/20
Reports Q1 revenue…
Reports Q1 revenue $207.3M, consensus $181.85M. Reports Q1 organic sales from continuing operations of $184.0M, up 10.5% over prior year period. The company states: "As of today, we have experienced and continue to expect some level of inefficiency as a result of the steps we have taken to respond to COVID-19 and to address the needs of our employees as they and their families navigate through these challenges. Additionally, we will continue to invest in our future and we do not anticipate a meaningful impact to our research and development programs as a result of COVID-19. Due to the volatility of current market conditions, primarily across commercial aerospace, we have made the decision to withdraw our full year guidance. However we believe our first quarter performance highlights the benefits of our efforts to diversify our products and end markets. Our defense programs contribute approximately 50% of our sales and are expected to remain strong with opportunities emerging for additional growth over the remainder of the year. Commercial aerospace, at approximately 30% of sales, presents the biggest risk to our performance. In this end market our sales split is approximately 80% OEM and 20% aftermarket. We are adjusting our manufacturing plans to meet the expected decline in new commercial aircraft production rates, however, the impact to our aftermarket business is more difficult to predict. The remaining 20% of our sales is primarily focused on the medical and industrial end markets which we anticipate to have pockets of strength and weakness, particularly given the range of customer applications. While the depth and duration of a downturn in these end markets is difficult to predict, we expect them to be less impacted and recover more quickly than commercial aerospace."
|Over a quarter ago|
Kaman upgraded to Overweight from Neutral at Alembic Global » 08:1203/0303/03/20
Alembic Global upgraded…
Alembic Global upgraded Kaman to Overweight from Neutral.
Kaman sees FY20 revenue $860M-$880M, consensus $850.36M » 16:3202/2402/24/20
Sees FY20 revenue…
Sees FY20 revenue adjusted EBITDA $120.7M-$136.3M. Commenting on the 2020 outlook, Mr. Starr stated, "We expect sales in the range of $860.0 to $880.0 million. We anticipate organic sales growth of 1.0% to 3.0%, despite the headwinds from 737MAX, and we expect Bal Seal to contribute approximately $95.0 million to our top line performance for the year. Consolidated operating margins of 5.0% to 6.7% will include costs related to the purchase accounting for Bal Seal of $32.0 million and costs related to our expense reduction efforts, corporate development activities, and transition services agreement totaling $10.3 million. Adjusted for these items, we expect consolidated operating margins in the range of 10.0% to 11.5%. With depreciation and amortization expense of approximately $35 million, we expect to deliver Adjusted EBITDA margin* at the consolidated level in the range of 14.0% to 15.5%, a 175 basis point increase at the mid-point over our Adjusted EBITDA margin for 2019. This anticipated improvement in Adjusted EBITDA margin is due to the expected sales mix in the year, the addition of higher margin sales from Bal Seal, improved performance from our structures programs, and the partial benefit from our cost reduction efforts. Finally, we expect earnings for 2020 to be weighted toward the second half of the year. Approximately 65% of our earnings will occur in the second half of the year, consistent with our earnings pattern in recent years."
Kaman reports Q4 adjusted EPS 80c, consensus 76c » 16:3102/2402/24/20
Reports Q4 revenue…
Reports Q4 revenue $237.8M, consensus $231.2M. Neal J. Keating, Chairman, President and Chief Executive Officer, commented, "We ended 2019 with strong fourth quarter results. Sales for the quarter increased 7.7% to $237.8 million and the mix was weighted toward our higher margin products resulting in Aerospace operating margin of 18.9%, or 19.0% adjusted. These results helped us to achieve the high end of our outlook for the year, with full year Aerospace operating margin of 17.1%, or 17.2% adjusted. The planning and execution of our team allowed us to deliver a record 41,429 joint programmable fuzes in the year, and with JPF backlog of $356.8 million at year end, we expect record delivery levels again in 2020. We also saw record sales and orders for our specialty bearings products in 2019, led by our self-lubricating bearings. While we anticipate the grounding of Boeing's 737MAX to impact our results in 2020, we expect to more than offset this impact with growth across our other specialty bearing and engineered products based on the increased order rates, which continued into 2020, and current backlog."
NN, Inc. could 'benefit the most' from strategic divestiture, says KeyBanc » 08:0801/0701/07/20
NNBR, AIT, AME, KAMN, TKR, TRS, WCC
Against a backdrop of…
Against a backdrop of tepid macro data and geopolitical uncertainty, KeyBanc analyst Steve Barger expects relatively weak organic growth in early 2020. As such, the analyst thinks companies will look to drive inorganic growth via acquisitions, or conversely right-size portfolios and balance sheets via divestitures. Broadly, he views Applied Industrial Technologies (AIT), Ametek (AME), Kaman (KAMN), Timken (TKR), TriMas (TRS), and Wesco (WCC) as actively seeking acquisitions, and thinks NN, Inc. (NNBR) could benefit the most from a strategic divestiture.
Kaman expands medical composite customer base » 16:0812/1012/10/19
Kaman Composites subsidiary of Kaman Corporation announced the expansion of their medical imaging customer base with an agreement to manufacture complex composite assemblies for Carestream Health in support of their cutting edge DRX product line. All composite detail parts and assemblies will be manufactured and delivered from the KCV facility in Bennington, Vermont. Deliveries are expected to begin in 2020.
Kaman Aerospace Group awarded IDIQ contract by Boeing » 06:0411/0811/08/19
Kaman Aerospace Group, a…
Kaman Aerospace Group, a subsidiary of Kaman, announced that it has been awarded an indefinite-delivery/indefinite-quantity contract by The Boeing Company (BA). This new work package is for the manufacture of wing control surfaces and structural assemblies in support of the U.S Air Force A-10 Thunderbolt Advanced Wing Continuation Kitting program. Work for this program will be performed in its Jacksonville, FL facility. The USAF awarded Boeing a $999M (ceiling) contract, which was announced in the Department of Defense release on August 21 to provide up to 112 new wing assemblies and up to 15 wing kits through 2030.
Kaman to acquire Bal Seal Engineering for $330M in cash » 06:0211/0511/05/19
Kaman and Bal Seal…
Kaman and Bal Seal Engineering announced that they have entered into a definitive agreement under which Kaman will acquire Bal Seal for $330M in cash, subject to customary adjustments for net debt and working capital. Bal Seal has been a leader in the design, development, and manufacturing of precision springs, seals, and contacts for the last sixty years. With a strong platform of more than 240 patents across its proprietary manufacturing and material technologies, Bal Seal specializes in delivering critical components to customers in the medical technology, aerospace and defense, and industrial end markets. Bal Seal has an established global presence, with manufacturing, sales, and distribution operations across the U.S., Europe, and Asia, as well as additional resources around the world to ensure the quality and reliability of its products. For the full year 2019, Bal Seal expects revenues of approximately $95M. The transaction is expected to close before year end, subject to customary closing conditions, including regulatory approvals in the U.S. and Germany.
Kaman sees FY19 aerospace revenue $740M-$760M 16:2611/0411/04/19