Kaydon 1st-quarter Profit Sinks 34 Percent

ANN ARBOR, Mich. (AP) — Industrial products maker Kaydon Corp. said Friday its first-quarter profit fell 34 percent as the global recession continued to weaken demand.

The company earned $10.1 million, or 30 cents per share, compared with $15.3 million, or 52 cents per share, in the same period a year ago. Kaydon also reduced its year-ago results by a penny to reflect a non-cash interest expense of $2 million.

Revenue fell just over 10 percent to $110.3 million from $123.3 million.

Analysts expected a profit of 27 cents per share on revenue of $106.1 million, according to a survey by Thomson Reuters.

"The global recession has impacted each of our businesses to varying degrees," said James O'Leary, chairman and CEO. "While certain end markets grew during the quarter, such as wind energy, defense and medical, they grew at lower rates than previously anticipated due to the direct or indirect effects of the global economic and financial crises."

Backlog fell 15 percent to $273.3 million from $319.9 million at the same time last year.

In afternoon trading, shares fell $1.15, or 3.6 percent, to $30.81.