Kaydon Q1 Results Beat Street; Sees Challenging 2009
Resource from: CBCC Likes:2949
May 04,2009
* Q1 EPS $0.30 vs est $0.27
* Q1 rev falls 11 pct
* Says 2009 will be very challenging (Recasts; adds details, analyst comment, s share movement)
By Bhaswati Mukhopadhyay
BANGALORE, May 1 (Reuters) - Kaydon Corp (KDN.N), which makes specialty ball bearings for wind turbines, posted first-quarter results that beat market estimates, but said it expects 2009 to be a very challenging year.
Shares of the company fell $1.34 to $30.62 in afternoon trade Friday on the New York Stock Exchange. They had touched a low of $30.55 earlier in the session.
"The global recession has impacted each of our businesses to varying degrees," Chief Executive James O'Leary said.
Late last year Kaydon froze salaries, closed or eliminated a number of benefit programs, curtailed overtime, and cut jobs due to the weakening global economy.
End markets, such as wind energy, defense and medical, grew but at lower-than-expected rates due to the effects of the global financial crises, CEO O'Leary said in a statement.
Tight credit conditions impacted ultimate end users' ability to finance new projects in the wind energy market, resulting in deferrals or near-term cancellation of certain projects previously planned for 2009, the CEO said.
Analyst Eli Lustgarten of Longbow Research said as opposed to being a growth year, 2009 will be a flat to marginally up year for wind energy. He has a "neutral" rating on the stock.
For the first quarter, net income fell to $10.1 million, or 30 cents a share, from $15.3 million, or 52 cents a share, a year earlier. Revenue fell 11 percent to $110.3 million.
Analysts on average were expecting earnings of 27 cents a share, before special items, on revenue of $106.1 million, according to Reuters Estimates.
The stronger U.S. dollar and higher pension costs have hurt the company.
Sales at its friction control products -- the biggest segment -- fell 3 percent to $72.2 million. The segment produces specialty balls, anti-friction bearings, split roller bearings.
MRAPs (mine resistant ambush protected) are a good portion of Kaydon's friction control sales and it will flatten out for the year, Lustgarten said.
Businesses serving international markets, mainly Europe, experienced declines similar to a drop experienced in its North American end markets in the later half of 2008, the company said.
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
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