Bloomfield aerospace manufacturer Kaman Corp. on Wednesday again reduced its sales outlook for the year on the heels of supply chain delays and other issues that contributed to a steep drop in third-quarter profitability.
Kaman reported third-quarter profits of $625,000, or 2 cents per diluted share, down from $14.7 million, or 53 cents per diluted share, in the year-ago period. Total third-quarter revenues were $172 million, down about 4% from last year’s $179.8 million.
Kaman announced it was reducing its sales outlook for the year to between $695 million and $710 million in revenues and between $12.1 million and $16.3 million in profits.
In the company’s August second-quarter earnings call, Kaman announced it was reducing its sales outlook for the year to between $700 million and $715 million in revenues.
In the third quarter, the company said it completed its largest-ever acquisition of Parker-Hannifin’s Aircraft Wheel & Brake division.
Kaman Chairman, President and CEO Ian Walsh said supply chain issues and program challenges in the company’s structures segment, which serves the aerospace, defense and medical markets with metallic and composite aerostructures and medical imaging services, negatively impacted margins and expenses in the quarter.
Supply chain delays have also impacted the company’s precision segment, which serves the aerospace and defense markets with products for missile and bomb systems, leading to its fuze delivery plan being slightly below expectations.
The engineered products segment, serving the aerospace, defense, industrial and medical markets with bearings and components, delivered strongly, with year over year sales growth of 9%, Kaman said.
“I am confident we are laying the groundwork for a much stronger company,” Walsh said. “We’ve got a strong team … we just hit a couple speedbumps this quarter.”