Kaydon Corporation (NYSE:KDN) today announced its results for the second fiscal quarter ended June 30, 2012.
Sales in the second fiscal quarter of 2012 were $124.4 million, compared to sales of $122.0 million in the second quarter of 2011. The negative effects of foreign currency translation impacted sales by $2.4 million during the quarter.
Diluted earnings per share was $.36 in the second quarter of 2012 compared to $.43 in the second quarter of 2011. Adjusted earnings per share, as defined below, was $.42 in the second quarter of 2012, compared to $.48 in the second quarter of 2011.Adjusted EBITDA, was $27.3 million, or 22.0 percent of sales, during the second quarter of 2012, compared to $30.1 million, or 24.6 percent of sales, during the second quarter of 2011. This press release includes certain non-GAAP measures, including Adjusted net income, Adjusted earnings per share, EBITDA, Adjusted EBITDA and free cash flow. Readers should refer to the attached Reconciliation of Non-GAAP Measures exhibit for the reconciliations of the applicable GAAP measures to the non-GAAP measures presented. Adjustments to GAAP results include certain items management considers in evaluating operating performance in each period. During the second quarter of 2012, such adjustments included $1.6 million of acquisition-related costs incurred primarily in connection with the recently completed Fabreeka acquisition and $1.1 million of non-cash amortization of previously incurred net actuarial losses related to postretirement benefit plans. Management Commentary James O’Leary, Chairman and Chief Executive Officer commented, “The most recent quarter was unfavorably impacted by continuing global economic weakness, which combined with our proactive response to manage inventory levels, led to unfavorable comparisons relative to last year’s second quarter. “The economic environment in Europe, and to a lesser extent Asia, continued to soften in the second quarter of 2012, affecting both business in these regions and exports to them. This impacted several of our businesses, notably those that service the high margin industrial machinery markets. In the United States, we saw slower growth than expected as orders placed for immediate shipment were impacted unfavorably affecting mix and marginal profitability in our largest segment, Friction Control.