Kaman sees 3.2 percent sales decline
Kaman Industrial Technologies reported that sales declined in the fourth quarter by 3.2 percent to $257.2 million.
That compares to sales of $265.7 million in the fourth quarter of 2015.
"Sales in our Distribution segment continued to be impacted by ongoing weakness in our end markets resulting in a 3.2% decrease as compared to the same period last year. Organic Sales per Sales Day decreased 4.9% for the fourth quarter when compared to the same period last year and declined 3.0% sequentially," said Neal J. Keating, chairman, president and chief executive officer.
"Distribution operating margins in the quarter were 2.2%, a decrease of 30 bps compared to the same period last year. Importantly, this decrease includes the costs associated with the deployment of productivity initiatives designed to expand operating margins, which totaled $4.6 million for the fourth quarter and $12.6 million for the full year 2016. Excluding these costs, Distribution operating margins increased despite lower daily sales levels, which we believe underscores the merits of the actions we are taking. We expect to fully realize the benefits of our productivity initiatives, with significantly lower deployment costs, beginning in 2017," he said.
For the full year, sales were $1.1 billion, compared to $1.2 billion in 2015.
For 2017, the company expects sales levels will range from a decrease of 1.0% at the low end to an increase of 4.0% at the high end.