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KAMAN ANTICIPATES LOSS FOR THIRD QUARTER DUE TO RESTRUCTURING CHARGE OF $65 MILLION; COMPANY DECLARES NORMAL DIVIDEND

 BLOOMFIELD, Conn., Sept. 9 /PRNewswire/ -- Kaman Corp. (NASDAQ: KAMNA) announced today that it anticipates reporting a net loss of between $2.10 and $2.40 per share for the third quarter of 1993 due to a pre-tax restructuring charge of approximately $65 million. The charge will reflect restructuring and other non-recurring costs which the company expects to incur in the next 24 months as it proceeds with downsizing and defense conversion initiatives.
 The company also declared its normal quarterly dividend at the rate of 11 cents per share on the outstanding class A and class B common stock of the company payable Oct. 18, 1993, to shareholders of record on Oct. 4, 1993.
 Kaman expects that several of its defense hardware programs will be completed during the next two years. In addition, certain of its commercial airliner programs are being stretched out. This means that the company's employment levels will be further reduced by approximately 600 people during the next two years. The company anticipates that the majority of these reductions will occur at its aerospace subsidiary, Kaman Aerospace Corp. The earnings charge will make provision for the reductions, contract close out costs and other costs incurred as part of the company's downsizing process.
 "These changes are difficult for all of us. This is the hardest part of taking the steps necessary to remain competitive in a challenging environment," said Charles H. Kaman, chairman and chief executive officer. "We are hopeful that we can accomplish many of the required employment reductions through normal retirement, attrition and voluntary separations.
 "We are a highly diversified organization with promising opportunities in commercial and industrial markets and in many types of defense programs," said Kaman. "Our distribution businesses are holding their own, despite a lackluster economic recovery. Our non-hardware defense operations are involved in areas such as proprietary advanced technology products, research and development, scientific services, software development and intelligence analyses, and we expect these areas of the defense business to remain relatively strong. To date, our non-hardware defense operations have maintained performance levels and, in many cases, have continued to grow.
 "Moreover, during the past several years," explained Kaman, "we have been pursuing numerous commercial activities evolving from our defense businesses, including development of our K-MAX 'aerial truck' helicopter. This continues as an effort to capitalize on our technology base and to offset the anticipated decline in defense. We have made meaningful investments in these defense conversion programs and this one-time charge will include certain development, retooling and start-up costs which are being incurred in these efforts.
 "Difficult as it may be to further reduce our work force, the steps we announce today will result in the kind of reduction in operating costs that is necessary in order to position the corporation to compete effectively and to grow in the future," concluded Kaman.
 Kaman Corp., headquartered here, is a highly diversified company with business activities in defense (34 percent), industrial (42 percent) and commercial (24 percent) markets. The company employs approximately 5,400 people in 200 locations throughout North America and the United Kingdom.
 -0- 9/9/93
 /CONTACT: J. Kenneth Nasshan of Kaman Corp., 203-243-7319/
 (KAMN)


CO: Kaman Corp. ST: Connecticut IN: ARO SU: ERP DIV

TW-MP -- NY048 -- 0338 09/09/93 12:50 EDT
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Publication:PR Newswire
Date:Sep 9, 1993
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