Kaman (KAMN) is a maker of industrial components such as bearings, mechanical and electrical power transmissions, fluid power, motion control, and materials handling components. Among the company’s biggest customers are airlines, to whom Kaman supplies metallic and composite detail parts, minor and major subassemblies, flight control surfaces, composite interiors and fuselage, and wing structures. The company also supplies parts to military customers. In addition, Kaman offers helicopter engineering subcontract programs for other manufacturers and self-lubricating bearings used in aircraft flight controls, turbine engines, and landing gear, as well as power transmission couplings for helicopters
Despite the slowdown in the US economy, Kaman appears to flying high. Earlier this month, the company set a 14-cent per share quarterly dividend. A promising move considering many companies have recently slashed or altogether eliminated their dividends. Kaman also recently made an acquisition, purchasing Puerto Rico’s Industrial Rubber and Mechanics Inc. for an undisclosed sum. Kaman will gain Industrial Rubber’s $13 million in annual sales and a stronger foothold in the market for power transmission and motion control products. Connecticut-based Kaman says its cash position is strong and that will continue to invest in its business going forward.
Earlier this year, Kaman announced major contracts to supply parts to Boeing and Sikorsky for various aircraft projects. Although Kaman does have a presence in the defense arena, about two thirds of the company’s sales come from the private sector. Insiders own two percent of Kaman’s shares while 125 institutions hold another 89 percent. Mutual fund owners include DFA, Fidelity, Gabelli and American Century.
Shares of Kaman closed at $21.88 on Friday and have traded between $19.51 and $39.31 over the past 52 weeks. The company has a market value of $555.6 million and a price-to-earnings ratio of 10.8. Key competitors include Applied Industrial Technologies Inc., United Technologies Corp. and W.W. Grainger Inc.
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