Kaman Corporation (NASDAQ-GS: KAMN) announced today that its subsidiary Kaman Industrial Technologies Corporation (Kaman) has acquired the assets of Target Electronic Supply, Inc. (Target), of Westwood, Massachusetts. Target, a leading motion control distributor in the New England trading area, increases Kaman's already strong position in those markets and will become part of Kaman's Minarik subsidiary.

"The acquisition of Target strengthens our motion control footprint in the New England area. With over 30 years of experience in the market place and their capability to provide engineered solutions, Target nicely complements the resources of Minarik and Kaman to offer the Northeastern markets superior motion, automation, and power transmission products and systems with unequalled application support and service," stated Andy Reid, Kaman's Area VP, Minarik.

Steve Smidler, President of Kaman said, "Target is a strong engineering and customer focused organization, which combined with the power transmission presence of Kaman and automation strength of Minarik creates an organization that is able to solve a wide variety of applications with multiple technologies that give our customers a competitive edge. Target fits nicely with our recent acquisitions of Minarik and Automation Technology and is continued execution of our overall expansion strategy to further increase our already national automation and motion control footprint."

Target, with locations in Massachusetts, Connecticut and New Hampshire, has seventeen employees. Kaman expects Target to have sales in 2012 of approximately $19 million.

About Kaman Industrial Technologies Corporation

Kaman, including Minarik, is a leading distributor of industrial parts, and operates more than 200 customer service centers and five distribution centers across North America. Kaman offers more than four million items including bearings, mechanical power transmission, electrical, material handling, motion control, fluid power, automation and MRO supplies to customers in virtually every industry. Additionally, Kaman provides engineering, design and support for automation, electrical, linear, hydraulic and pneumatic systems as well as belting and rubber fabrication, customized mechanical services, hose assemblies, repair, fluid analysis and motor management. Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut conducts business in the aerospace and industrial distribution markets. More information is available at www.kaman.com.

SOURCE: Kaman Corporation

Kaman Corporation
Eric Remington, 860-243-6334
VP Investor Relations
Eric.Remington@Kaman.com
or
Kaman Industrial Technologies
John Reilley, 818-637-7500
VP Marketing, Minarik
John.Reilley@minarik.com

Kaman and Aernnova have signed a multi-year and multi-part number preliminary agreement for the manufacture of sheet metal detail parts in support of Aernnova’s wing manufacturing operations. Additional first part number deliveries are scheduled over the next few months.

“We are pleased our Chihuahua plant is a fully operational sheet metal parts and subassemblies aerospace manufacturing facility after having opened just last year,” said Greg Steiner, President Kaman Aerospace Group. “We also value our growing relationship with Aernnova and look forward to additional parts deliveries in support of their aerospace manufacturing programs in Mexico and elsewhere.”

About Kaman Aerostructures

For more than 50 years, Kaman Aerostructures, a unit of Kaman Aerospace Group, has provided total aerostructures solutions for the global aerospace market. From Manufacturing Centers of Excellence in Jacksonville, FL, and Chihuahua, Mexico, Kaman Aerostructures’ experience and capabilities cover a broad spectrum of products from machined and sheet metal fabricated detail parts to major metallic and composite assemblies.

About Kaman Corporation

Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut conducts business in the aerospace and industrial distribution markets. The company produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; aerostructure engineering design analysis and FAA certification services; safe and arm solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; and support for the company’s SH-2G Super Seasprite maritime helicopters and K-MAX medium-to-heavy lift helicopters. The company is a leading distributor of industrial parts, and operates more than 200 customer service centers and five distribution centers across North America. Kaman offers more than four million items including bearings, mechanical power transmission, electrical, material handling, motion control, fluid power, automation and MRO supplies to customers in virtually every industry. Additionally, Kaman provides engineering, design and support for automation, electrical, linear, hydraulic and pneumatic systems as well as belting and rubber fabrication, customized mechanical services, hose assemblies, repair, fluid analysis and motor management. More information is available at www.kaman.com.
 

Contacts:

Eric RemingtonVP

Investor Relations

Kaman Corporation

(860) 243-6334

Eric.Remington@Kaman.com

Jim Melvin

VP Sales & Marketing

Kaman Aerostructures

(904) 485-1605

James.Melvin@Kaman.com

 

“The autonomous flying K-MAX is designed to resupply Marines on the battlefield and in remote locations,” said Roger Il Grande, director of Airborne Systems at Lockheed Martin Mission Systems & Sensors. “Through various scenarios during QRA, the unmanned K-MAX UAS performed extremely well, exceeding the cargo delivery objectives of the assessment.”

The U.S. Navy awarded Lockheed Martin a $45.8 million contract in December 2010 for unmanned K-MAX helicopters to perform in a U.S. Marine Corps evaluation of unmanned cargo resupply. The Navy intends to field a Cargo UAS this fall for a six-month deployment to augment Marine Corps ground and air logistics operations in Afghanistan.

"The Quick Reaction Assessment proved sustainment of a cargo-carrying capability in an operational environment” said Capt. Patrick Smith, Cargo UAS program manager at the Navy’s Patuxent River, Md., facility. "We look forward to deploying a capability that will supplement rotary wing assets and reduce Marine Corps exposure to improvised explosive devices in theater."

A formal report will be released by Commander Operational Test and Evaluation Force (COMOPTEVFOR) 30 days post completion of QRA. Results will be reviewed by Navy and Marine Corps leadership to determine the system’s suitability for deployment.

In July, the unmanned K-MAX successfully completed Electromagnetic Environmental Effects (E3) testing at Pax River. The purpose of the E3 testing was to measure and provide results regarding the aircraft's electromagnetic susceptibility to certain frequencies, which can affect flight-critical and other systems on the aircraft.

“Since partnering in 2007, Lockheed Martin and Kaman Aerospace have successfully transformed Kaman’s proven K-MAX power-lift manned helicopter into a UAS capable of autonomous or remote controlled cargo delivery,” said Terry Fogarty, general manager, UAS Product Group at Kaman Aerospace.Kaman designed the K-MAX platform, and Lockheed Martin has designed the helicopter’s mission management and control systems to provide the K-MAX with exceptional flight autonomy in remote environments and over long distances.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s 2010 sales from continuing operations were $45.8 billion.

Kaman Helicopters is a division of Kaman Aerospace Corporation, a subsidiary of Kaman Corporation (NASDAQ-GS: KAMN). Founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut, the Company conducts business in the aerospace and industrial distribution markets.

Media Contact:

Jeff Brown, (607)751-2796; e-mail: jeff.brown@lmco.com

Terry Fogarty, (860) 243-7431; e-mail: terry.fogarty@kaman.com

For additional information, visit our web sites:

http://www.lockheedmartin.com/ms2

http://www.kaman.com

The Board of Directors of Kaman Corporation (NASDAQ-GS:KAMN)has approved a 14% increase in the company's regular quarterly dividend to 16 cents per share. The dividend is payable October 24, 2011 to shareholders of record on October 10, 2011.

"Today's Board action reflects our continuing commitment to increase shareholder returns and we are proud to say that this is our 41st consecutive year of dividend payments. This also demonstrates our company's strong financial position, the Board's continued confidence in our future, and our cash generation prospects," stated William Denninger, Senior Vice President and Chief Financial Officer.

Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut conducts business in the aerospace and industrial distribution markets. The company produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; aerostructure engineering design analysis and FAA certification services; safe and arm solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; and support for the company's SH-2G Super Seasprite maritime helicopters and K-MAX medium-to-heavy lift helicopters. The company is a leading distributor of industrial parts, and operates more than 200 customer service centers and five distribution centers across North America. Kaman offers more than four million items including bearings, mechanical power transmission, electrical, material handling, motion control, fluid power, automation and MRO supplies to customers in virtually every industry. Additionally, Kaman provides engineering, design and support for automation, electrical, linear, hydraulic and pneumatic systems as well as belting and rubber fabrication, customized mechanical services, hose assemblies, repair, fluid analysis and motor management. More information is available at www.kaman.com.

SOURCE: Kaman Corporation

Kaman Corporation
Eric Remington, 860-243-6334
VP, Investor Relations
eric.remington@kaman.com

BLOOMFIELD, Conn., Aug 04, 2011 (BUSINESS WIRE) --

Kaman Corp. (NASDAQ GS: KAMN) today reported financial results for the second quarter ended July 1, 2011.

Neal J. Keating, Chairman, President and Chief Executive Officer, stated, "We are very pleased with our second quarter results, which reflect continuing sales growth and improved profitability, in each of our businesses. In Industrial Distribution, we again achieved record sales and as a result of the higher volume and our focus on profitability improvement delivered higher margin performance. In Aerospace, we saw strong top line performance across programs and generated solid profitability. Our backlog continues to be healthy ending the quarter at $536 million, up 16% from $461 million a year ago. Our strong second quarter performance gives us continued confidence in our outlook for the full year as well as in our long-term competitive and strategic position."

Segment reports follow:

Industrial Distribution segment sales increased 13.5% in the 2011 second quarter to $239.3 million compared to $210.9 million a year ago. Acquisitions contributed $10.3 million in sales in the quarter (sales from acquisitions are classified as organic beginning with the thirteenth month following the acquisition). On a sales per sales day* basis, organic sales were up 8.6% over last year's second quarter (see Table 2 for additional details regarding the Company's sales per sales day performance). Segment operating income for the second quarter of 2011 was $12.3 million, a 58.9% increase from operating income of $7.7 million in the second quarter of 2010. The operating profit margin for the second quarter of 2011 was 5.1% and was the ninth consecutive quarter of sequential operating profit improvement. In comparison, the operating profit margin was 4.9% in the first quarter of 2011 and 3.7% in the second quarter of 2010.

Industrial Distribution segment sales for the second quarter of 2011 reflect strong markets conditions and growth from acquisitions made in 2010. Market strength was broad based across most geographies, customers and end markets . The operating margin was higher on both a year-over-year and sequential basis as a result of the higher sales volume, improved gross margin, contributions from acquisitions, and benefits from our productivity improvements including an organizational realignment and IT investments.

Aerospace segment sales were $145.8 million, an increase of 37.3% from sales of $106.2 million in the second quarter of 2010. Operating income for the second quarter of 2011 was $21.9 million, compared to operating income of $12.1 million in the 2010 second quarter. The operating margin in this year's second quarter was 15.0% as compared to 11.4% in the comparable period in the prior year. Global Aerosystems, acquired late last year, contributed $7.7 million in sales during the second quarter of 2011. Organic sales in the quarter were up 30.0% over the prior year period. In addition to the contribution from the acquisition, Aerospace sales and profits were higher over the prior year due to increased shipments under the Company's Joint Programmable Fuze program, higher revenue under the Company's unmanned K-MAX(R) program, and increased sales from bearing product lines.

Outlook

The Company's updated expectations for 2011 are as follows:

• Aerospace segment sales of $550 million to $565 million
• Aerospace operating margins of 15.2% to 15.5%
• Industrial Distribution sales of $930 million to $960 million
• Industrial Distribution segment operating margins of 4.7% to 4.9%
• Interest expense of approximately $12.5 million
• Corporate expenses of approximately $43.0 million to $44.0 million for the year

Aerospace expectations exclude the sale of SH-2G(I) aircraft. The outlook for corporate expenses excludes the non-recurring benefit of $2.4 million recognized in the first quarter of 2011 resulting from the death of a former executive.

Chief Financial Officer, William C. Denninger, commented, "As we look ahead, our solid first half performance provides us with confidence in our ability to achieve our previously stated full year outlook ranges for sales in both of our businesses. Our Industrial Distribution business is performing well, despite a tough competitive environment and rising costs. Based on this performance we have increased our outlook for profitability in the segment. Our revised expectations for operating margin as a percentage of sales are 4.7% to 4.9%. This is up significantly over the 3.6% and 2.0% we achieved for the full years 2010 and 2009, respectively. Similarly, our Aerospace business is delivering good results. We have experienced some shifting of revenues within the year, such as unmanned K-MAX, resulting in a stronger first half than expected, and while we have encountered some program pushouts, such as A-10, other programs have demonstrated stronger than expected demand, such as BLACK HAWK. All factors considered we are maintaining our full year sales and profit outlook for Aerospace. In addition to our expectations for the full year, we have made good progress against our strategic plan and believe that we are well positioned to drive long-term growth and value to our shareholders."

Please see the MD&A section of the Company's SEC Form 10-Q filed concurrent with the issuance of this release for greater detail on the quarter's results and various company programs.

A conference call has been scheduled for tomorrow, August 5, 2011 at 8:30 AM EDT. Listeners may access the call live over the Internet through a link on the home page of the Company's website at http://www.kaman.com. In its discussion, management may include certain non-GAAP measures related to company performance. If so, a reconciliation of that information to GAAP, if not provided in this release, will be provided in the exhibits to the conference call and will be available through the Internet link provided above.

Non-GAAP Measure Disclosure

Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures indicated by an asterisk (*) used in this release or in other disclosures provide investors with important perspectives into the Company's ongoing business performance. The Company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. We define the non-GAAP measures used in this report and other disclosures, as follows:

Organic Sales per Sales Day - Organic sales per sales day is defined as GAAP "Net sales from the Industrial Distribution segment" less sales derived from acquisitions, divided by the number of sales days in a given period. Sales days are essentially business days that the Company's branch locations are open for business and exclude weekends and holidays. Sales days are provided as part of this release. Management believes sales per sales day provides investors with an important perspective on how net sales may be impacted by the number of days the segment is open for business.

Management uses sales per sales day as a measurement to compare periods in which the number of sales days differ. The following table illustrates the calculation of sales per sales day using "Net sales: Industrial Distribution" from the "Segment Information" footnote in the "Notes to Condensed Consolidated Financial Statements" from the Company's Form 10-Q filed with the Securities and Exchange Commission on August 4, 2011. Sales from acquisitions are classified as organic beginning with the thirteenth month following the acquisition.

Free Cash Flow - Free cash flow is defined as GAAP "Net cash provided by (used in) operating activities" less "Expenditures for property, plant & equipment." Management believes free cash flow provides investors with an important perspective on the cash available for dividends to shareholders, debt repayment, and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt.

Management uses free cash flow internally to assess both business performance and overall liquidity. The following table illustrates the calculation of free cash flow using "Net cash provided by (used in) operating activities" and "Expenditures for property, plant & equipment", GAAP measures from the cash flow statement included in this release.

Debt to Capitalization Ratio - Debt to capitalization ratio is calculated by dividing debt by capitalization. Debt is defined as GAAP "Notes payable" plus "Current portion of long-term debt" plus "Long-term debt, excluding current portion." Capitalization is defined as Debt plus GAAP "Total shareholders' equity." Management believes that debt to capitalization is a measurement of financial leverage and provides investors with an insight into the financial structure of the Company and its financial strength. The following table illustrates the calculation of debt to capitalization using GAAP measures from the balance sheets included in this release.

Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut conducts business in the aerospace and industrial distribution markets. The Company produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; safe and arm solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; and support for the Company's SH-2G Super Seasprite maritime helicopters and K-MAX medium-to-heavy lift helicopters. The Company is a leading distributor of industrial parts, and operates more than 200 customer service centers and five distribution centers across North America. Kaman offers more than 3.5 million items including bearings, mechanical power transmission, electrical, material handling, motion control, fluid power, automation and MRO supplies to customers in virtually every industry. Additionally, Kaman provides engineering, design and support for automation, electrical, linear, hydraulic and pneumatic systems as well as belting and rubber fabrication, customized mechanical services, hose assemblies, repair, fluid analysis and motor management.

Forward-Looking Statements

This release contains forward-looking information relating to the Company's business and prospects, including the Aerospace and Industrial Distribution businesses, operating cash flow, and other matters that involve a number of uncertainties that may cause actual results to differ materially from expectations. Those uncertainties include, but are not limited to: 1) the successful conclusion of competitions for government programs and thereafter contract negotiations with government authorities, both foreign and domestic; 2) political conditions in countries where the Company does or intends to do business; 3) standard government contract provisions permitting renegotiation of terms and termination for the convenience of the government; 4) satisfactory conclusion to government inquiries or investigations regarding government programs; 5) domestic and foreign economic and competitive conditions in markets served by the Company, particularly the defense, commercial aviation and industrial production markets; 6) risks associated with successful implementation and ramp up of significant new programs; 7) potential difficulties associated with variable acceptance test results, given sensitive production materials and extreme test parameters; 8) management's success in increasing the volume of profitable work at the Wichita facility; 9) successful resale of the SH-2G(I) aircraft, equipment and spare parts; 10) receipt and successful execution of production orders for the JPF U.S. government contract, including the exercise of all contract options and receipt of orders from allied militaries, as all have been assumed in connection with goodwill impairment evaluations; 11) satisfactory resolution of(i) the Company's litigation relating to the FMU-143 program and (ii) the Wichita subpoena matter; 12) continued support of the existing K-MAX(R) helicopter fleet, including sale of existing K-MAX(R) spare parts inventory; 13) cost estimates associated with environmental remediation activities at the Bloomfield, Moosup and New Hartford, CT facilities and our U.K. facilities; 14) profitable integration of acquired businesses into the Company's operations; 15) changes in supplier sales or vendor incentive policies; 16) the effects of price increases or decreases; 17) the effects of pension regulations, pension plan assumptions and future contributions; 18) future levels of indebtedness and capital expenditures; 19) continued availability of raw materials and other commodities in adequate supplies and the effect of increased costs for such items; 20) the effects of currency exchange rates and foreign competition on future operations; 21) changes in laws and regulations, taxes, interest rates, inflation rates and general business conditions; 22) future repurchases and/or issuances of common stock; and 23) other risks and uncertainties set forth in the Company's annual, quarterly and current reports, proxy statements and other filings with the SEC.Any forward-looking information provided in this release should be considered with these factors in mind. The Company assumes no obligation to update any forward-looking statements contained in this release.

Kaman Corp.
Eric Remington, 860-243-6334
VP, Investor Relations
eric.remington@kaman.com

Kaman Corporation
Eric Remington, 860-243-6334
VP, Investor Relations
eric.remington@kaman.com

Kaman Corporation
Eric Remington
VP, Investor Relations
(860) 243-6334
eric.remington@kaman.com

Kaman Corporation
Eric Remington, 860-243-6334
VP, Investor Relations
eric.remington@kaman.com

Neal J. Keating, Chairman, President and Chief Executive Officer, stated, "Our first quarter performance marked a strong start to fiscal 2011 as we delivered growth in revenue, operating margins, and earnings in both our Industrial Distribution and Aerospace segments compared to the same period in the prior year. In Industrial Distribution, we achieved record sales driven by continued strong customer demand in almost all of our end markets. We were also able to expand our operating margins to nearly 5% demonstrating further progress toward our goal of 7% in 2014. In Aerospace, our Joint Programmable Fuze (JPF) program provided substantially improved profitability compared to the prior year given the transition to Option 6 deliveries and commercial sales. In addition, sales and operating profit from our bearing product lines were up year over year. Our Aerospace order activity has been strong with bookings of $43.7 million in JPF Option 8 orders so far this year, extending our backlog on this program into 2013. Further, our incoming order rates for our bearing product lines increased substantially, helping build our backlog for future quarters and affirming our outlook for the Aerospace business this year. Overall, we are encouraged by our results in the first quarter and are optimistic about the continued growth potential for both of our businesses."

Segment reports follow:

The Industrial Distribution segment achieved sales growth of 33.3% in the 2011 first quarter, to a record $238.9 million from $179.3 million a year ago. Acquisitions contributed $37.6 million in sales during the quarter. On a sales per sales day* basis, organic sales were up 12.3% over last year's first quarter (see table on page 5 for additional details regarding the Company's sales per day performance). Segment operating income for the first quarter of 2011 was $11.7 million, a 143.8% increase from operating income of $4.8 million in the first quarter of 2010. The operating profit margin for the first quarter of 2011 was 4.9% compared to 4.2% in the fourth quarter of 2010 and 2.7% in the first quarter of 2010.

Industrial Distribution segment sales for the first quarter of 2011 reflect growth from acquisitions made in 2010, and a healthier business environment compared to the same period in 2010. The improved market conditions were broad-based across geographies, customers and end markets. Operating margin was higher year-over-year and on a sequential basis in the first quarter due to the contribution from acquisitions, leverage from higher sales volume, and higher levels of vendor rebates.

Aerospace segment sales were $139.0 million in the first quarter of 2011, an increase of 42.5% from sales of $97.5 million in the first quarter of 2010. The sales increase was primarily attributable to higher sales prices and increased volume of JPF fuzes combined with $7.8 million of sales from Global Aerosystems, which was acquired in December 2010. Sales recognized under the Company's unmanned K-MAX(R) program also contributed to the year over year sales increase. Operating income for the first quarter of 2011 was $20.9 million, compared to $9.6 million in the 2010 first quarter. The increased operating income in the first quarter was primarily a result of improved profitability on the JPF fuze program, and year over year improvement at our Wichita composites facility.

Other

Consolidated operating income includes a $2.4 million non-recurring benefit resulting from the death of a former executive. Free cash flow* for the first quarter 2011 was a use of $21.2 million, which includes a net payment to the Commonwealth of Australia of $15.5 million and a pension plan contribution of $9.8 million.

Outlook

The Company's updated expectations for 2011 include:

• Aerospace segment sales of $550 million to $565 million
• Aerospace operating margins of 15.2% to 15.5%
• Industrial Distribution sales of $930 million to $960 million
• Industrial Distribution segment operating margins of 4.6% to 4.8%
• Interest expense of approximately $12.5 million
• Corporate expenses of approximately $43.0 million to $44.0 million for the year

Aerospace expectations exclude the potential sale of SH-2G(I) aircraft. The outlook for corporate expenses excludes the non-recurring benefit of $2.4 million recognized in the first quarter of 2011 resulting from the death of a former executive.

Chief Financial Officer William C. Denninger commented, "As we look ahead, in Industrial Distribution, given our slightly better than expected revenue and operating margin improvement in the first quarter, we now expect to deliver revenue growth for the full year closer to the high end of our previously stated range. In addition, we have upwardly revised our expectations for operating margins for 2011 and now expect to be up 100 to 120 basis points compared to the prior year. In Aerospace, we were pleased to see our orders for specialty bearings strengthen as we had anticipated, leaving us confident in our ability to maintain our prior outlook for sales and operating margin growth."

Please see the MD&A section of the Company's Form 10-Q filed with the Securities and Exchange Commission (SEC) concurrently with the issuance of this release for more information on our first quarter 2011 results and various company programs.

A conference call has been scheduled for tomorrow, May 6, 2011 at 8:30 AM ET. Listeners may access the call live over the Internet through a link on the home page of the Company's website at http://www.kaman.com. In its discussion, management may include certain non-GAAP measures related to Company performance. If so, a reconciliation of that information to GAAP, if not provided in this release, will be provided in the exhibits to the conference call and will be available through the Internet link provided above.

Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut conducts business in the aerospace and industrial distribution markets. The company produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; aerostructure engineering design analysis and FAA certification services; safe and arm solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; and support for the company's SH-2G Super Seasprite maritime helicopters and K-MAX medium-to-heavy lift helicopters. The company is a leading distributor of industrial parts, and operates more than 200 customer service centers and five distribution centers across North America. Kaman offers more than four million items including bearings, mechanical power transmission, electrical, material handling, motion control, fluid power, automation and MRO supplies to customers in virtually every industry. Additionally, Kaman provides engineering, design and support for automation, electrical, linear, hydraulic and pneumatic systems as well as belting and rubber fabrication, customized mechanical services, hose assemblies, repair, fluid analysis and motor management. More information is available at www.kaman.com.

Non-GAAP Measures Disclosure

Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures indicated by an asterisk (*) used in this release or in other disclosures provide investors with important perspectives into the Company's ongoing business performance. The Company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. We define the non-GAAP measures used in this report and other disclosures, as follows:

Organic Sales per Sales Day - Organic sales per sales day is defined as GAAP "Net sales of the Industrial Distribution segment" less sales derived from current year acquisitions, divided by the number of sales days in the period. Sales days are essentially business days that the Company's branch locations are open for business and exclude weekends and holidays. Sales days are provided as part of this release. Management believes sales per sales day provides investors with an important perspective on how net sales may be impacted by the number of days the segment is open for business.

Management uses sales per sales day as a measurement to compare periods in which the number of sales days differs. The following table illustrates the calculation of sales per sales day using "Net sales: Industrial Distribution" from the "Segment Information" footnote in the "Notes to Condensed Consolidated Financial Statements" from the Company's Form 10-Q filed with the SEC on May 5, 2011 (in thousands, except days):

(a) Organic sales per sales day is a metric management uses to evaluate performance trends at its Industrial Distribution segment and is calculated by taking total organic sales for the quarter divided by the number of sales days during the quarter. See Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures.

Free Cash Flow - Free cash flow is defined as GAAP "Net cash provided by (used in) operating activities" less "Expenditures for property, plant & equipment." Management believes free cash flow provides investors with an important perspective on the cash available for dividends to shareholders, debt repayment, and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt.

Management uses free cash flow internally to assess both business performance and overall liquidity. The following table illustrates the calculation of free cash flow using "Net cash provided by (used in) operating activities" and "Expenditures for property, plant & equipment" GAAP measures from the cash flow statement on page 9 (in thousands):

Debt to Capitalization Ratio - Debt to capitalization ratio is calculated by dividing debt by capitalization. Debt is defined as GAAP "Notes payable" plus "Current portion of long-term debt" plus "Long-term debt, excluding current portion." Capitalization is defined as Debt plus GAAP "Total shareholders' equity." Management believes that debt to capitalization is a measurement of financial leverage and provides investors with an insight into the financial structure of the Company and its financial strength. The following table illustrates the calculation of debt to capitalization using GAAP measures from the balance sheets on page 8 (in thousands):

Kaman Corporation
Eric Remington, 860-243-6334
VP, Investor Relations
eric.remington@kaman.com
or
Kaman Aerospace, Precision Products Division
Ken Kelly, 860-632-4536
Director, Business Development
ken.kelly@kaman.com