Kaman Sales Drop 1.5% in 2Q

BLOOMFIELD, Conn.—Kaman Corp. (NYSE:KAMN) Thursday reported financial results for the second fiscal quarter ended July 3, 2015.

The company reported second-quarter net sales of $446.3 million, a decrease of 1.5% year-over-year. Operating income increased by 6.7%, to $30.4 million. Kaman’s year-to-date free cash flow* generation is $35.0 million.

The distribution segment saw a decrease in organic sales of less than 1% when compared to the prior year, citing weakness in the industrial end markets ending the positive organic sales growth trends experienced over the past six quarters.

CEO Neal J. Keating stated, “For the second quarter we achieved adjusted diluted earnings per share* of $0.63, a 37% increase over the first quarter of 2015. This improved performance was driven by a favorable sales mix and operational execution at Aerospace and sequential operating margin improvement at Distribution.”

CFO Robert D. Starr commented, “At Distribution, organic sales per sales day* increased in April; however, decreased sequentially throughout the remaining months of the second quarter resulting in a decline of 0.8% for the period.”

Kaman has lowered their top line expectations for both the Aerospace and Distribution segments. The revised 2015 Distribution outlook is as follows: Sales of $1,200 million to $1,225 million; Operating margins of 4.8% to 5.0%.

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