Kaydon Reports First Quarter 2004 Results

Kaydon Corp. (USA) reported first quarter 2004 financial results, reflecting stronger sales and the effects of a rebounding manufacturing economy. At the same time, Kaydon notched another victory in the eight-year $700 million "transaction lawsuit," challenging the transactions which created Kaydon from Keene Corp. and involve assignment of asbestos liabilities. Sales in the quarter were up over 18%, to USD $83.3 million, from $70.8 million in first quarter 2003. Net income went up almost 26%, hitting $8.9 million from $7.1 million in 2003. Kaydon said it experienced increased demand across virtually all of its product lines, including specialty bearings, linear deceleration products, rings and seals, filtration products, slip rings, and metalforming equipment. Increased sales, leveraging its manufacturing costs, a more favorable and profitable product sales mix, and a modest currency effect from the continuing strength of the Euro, all contributed to the improved net income picture which accompanied the increased sales. Kaydon also said first quarter 2004 brought the company's largest quarterly order booking since 1998; $92 million, versus $80.6 million during first quarter 2003. A the end of the first quarter, Kaydon's order backlog was $105.6 million. President and CEO, Brian Campbell, said: "We are pleased with our first quarter 2004 operating performance in which we benefited from the operating leverage inherent in increased sales from our proprietary product positions. Our strong order intake during the quarter is further evidence that we are feeling the positive momentum from the recovery in the manufacturing economy. We believe that because of our strong product and market positions, as well as cost savings initiatives including lean manufacturing, new systems integration, selective restructuring plans, and our Company-wide Six Sigma program, we are well poised to capitalize on further economic growth." Founded in 1941, Kaydon now manufactures standard and custom-engineered bearings, hydraulic cylinders, slip rings and filters, supplying a broad and diverse group of industrial, aerospace, medical and electronic equipment, and aftermarket customers. In the bearing industry, Kaydon is a key manufacturer of slip-ring and specialty bearing products sold to security, military and industrial markets for industrial and aerospace applications. The company also includes Cooper Roller Bearing (UK), a leading manufacturer of split roller bearings, thrust bearings and other custom bearings.