Bloomfield aerospace and medical device manufacturer Kaman Corp. reported a $38.5 million loss in 2020’s third quarter as the COVID-19 pandemic continues to negatively impact the commercial aerospace industry.
In his first earnings call as Kaman’s CEO, Ian Walsh told shareholders the company’s commercial aviation business was down more than 25% from 2019’s third quarter, and that sales of medical devices haven’t fully recovered after dropping by 30% in the second quarter.
Walsh said he expects medical devices to slowly rebound, but could see headwinds in 2020’s final quarter, since spiking COVID-19 rates could delay elective procedures. However, he also said he thinks medical devices will be a source of long-term growth.
“I strongly believe this is key to our future,” Walsh said.
Kaman’s $38.5 million loss in the third quarter, or -$1.39 per diluted share, compares with a profit of $143 million, or $5.08 per diluted share, during the same period last year. In addition to headwinds in commercial aerospace and medical devices, Kaman reported a $50.3 million one-time charge, related to a write down of its aerosystems unit.
Kaman’s sales improved in the third quarter, largely driven by more than $68 million in contracts with Lockheed Martin and the U.S. Air Force. Sales reached $214 million, a 17% jump from 2019’s third quarter, when Kaman did $183 million in sales.
During the Thursday morning earnings call, Kaman CFO Robert Starr said he thinks defense and fuze sales will show continued strength in the fourth quarter, while commercial aerospace and medical devices could see continued headwinds.