ANN ARBOR, Mich. (AP) — Kaydon Corp., which makes bearings and other industrial products, said Friday its second-quarter profit fell 17 percent, hurt by weak economic conditions in Europe and Asia that reduced demand.
The Ann Arbor, Mich.-based company earned $11.7 million, or 36 cents per share, down from $14.2 million, or 43 cents per share, in the same quarter last year. Excluding one-time acquisition and retiree benefit-related charges, the company said it posted an adjusted profit of 42 cents per share for the recent quarter.
That fell short of Wall Street predictions. Analysts, on average, expected a profit of 45 cents per share, according to a FactSet poll.
Revenue rose slightly to $124.4 million from $122 million. Analysts expected $128.2 million.
Kaydon said weakening economic conditions in Europe and Asia reduced its sales, while slowing economic growth in the U.S. lower its profitability. The company said it remains cautious about its prospects for the second half of the year, as its customers increasingly worry about the global economy.
The effects of unfavorable currency exchange rates reduced the recent quarter's profit by $2.4 million, the company said.
Friction control sales rose 8.7 percent to $71.5 million, while wind revenue grew nearly 50 percent to $19.8 million on higher demand from turbine makers.
Sales of velocity control products edged down 3.2 percent to $24.5 million on lower European demand, while sales of "other" industrial products tumbled 8.1 percent on lower sales volumes across many of its markets, Kaydon said.
Kaydon shares rose 28 cents to $20.67 in afternoon trading.
