The aircraft was lauded for providing “a safer way to supply troops deep inside hostile territory.”  The Unmanned K-MAX recently became the first-ever U.S. Marine Corps unmanned aircraft system to deploy in an operational environment having arrived in Afghanistan. 

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. 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. 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.

The Kaman Corporation (NASDAQ-GS:KAMN) board of directors today declared a regular quarterly dividend of 16 cents per common share. The dividend will be paid on January 10, 2012 to shareholders of record on December 27, 2011.

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

Kaman Corp. (NASDAQ-GS: KAMN) announced that the Company has scheduled a continuation of its third quarter earnings call for 2:00 PM EDT, today, Thursday, November 3, 2011. The call began earlier this morning but was interrupted by technical difficulties with a service provider. The Company noted that the text of remarks made on the call this morning has been filed as an 8-K and is available via the Company's website at: http://www.kaman.com/investor-relations/financial-information/sec-filings/. On the continuation of the call, management will repeat remarks made earlier today and then proceed to Q&A.

Listeners may access the conference call live over the Internet via the webcast link: http://viavid.net/dce.aspx?sid=00008F98. Interested parties may also call 1-800-860-2442, or for international callers 1-412-858-4600.

The archived version of the call may be accessed by dialing 1-877-870-5176, or for international callers 1-858-384-5517 (passcode: 10006570) beginning approximately three hours after the call ends, and will be available until November 10, 2011 at 11:59 PM EST.

SOURCE: Kaman Corporation

Kaman Corporation
Eric Remington
VP, Investor Relations
860-769-7794 (temporary, 11/3 only)
eric.remington@kaman.com

The archived version of the call may be accessed by dialing 1-877-870-5176, or for international callers 1-858-384-5517 (passcode: 10006570), and will be available until November 10, 2011 at 11:59 PM EST.

Kaman Corporation (NASDAQ-GS:KAMN) today announced that its subsidiary, Kaman Aerospace Group, Inc., has entered into an agreement to acquire Vermont Composites Inc., a leader in the design and manufacture of composite aerostructures and advanced composite medical equipment based in Bennington, Vermont.

Gregory L. Steiner, President of Kaman Aerospace Group commented, "This is an excellent acquisition for Kaman that advances the strategy for our Composites business. Vermont Composites has developed a reputation as an innovative, leading-edge technology company. They have demonstrated solid growth and bring strong relationships with prime manufacturers. The acquisition accelerates our overall growth, further diversifies our platform positions, and enhances our standing in the higher-growth markets for composite structures, particularly in the intelligence, surveillance and reconnaissance sectors. Vermont Composites also brings a strong management team and dedicated employees skilled in design and manufacturing of high-technology composite products.

Founded in 1979, Vermont Composites is expected to generate sales of $32 million for 2011, and has approximately 230 employees. Vermont Composites has high profile positions on a number of major aerospace platforms including V-22 Osprey, P-8 Poseidon, C-130 Hercules, MH-60 BLACK HAWK and various UAVs.

The senior management team of Vermont Composites, including its President and CEO, Patrick J. Wheeler, have agreed to continue their employment with Kaman. Vermont Composites will become part of the Kaman Composites Division, led by President James C. Larwood, who commented, "This acquisition is a great fit for Kaman and supports our strategy of supplementing our ongoing growth with targeted, strategic acquisitions. It expands our presence onto a number of additional platforms with solid growth prospects. I am pleased that Pat and his team have agreed to become part of the Kaman family, and look forward to working with them."

Mr. Wheeler said, "We are extremely pleased to be joining the Kaman organization. Kaman is an excellent home for Vermont Composites, and will enhance our ongoing growth plans, supported by their forward-looking culture, scale, and strong credibility. We envision significant strategic benefits from this combination which will allow us to even better serve our customers' needs. Our employees and experienced management team are looking forward to joining the Kaman organization and working together along with the county of Bennington and State of Vermont to capitalize on future opportunities.

The transaction is expected to close in early November. Vermont Composites' financial advisor was McGladrey Capital Markets and SNR Denton was its legal counsel. Kaman was represented by the law firm of Crowell & Moring LLP.

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.

SOURCE: Kaman Corporation

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

Diluted earnings per share of $0.47; Net sales $357 million Industrial Distribution operating income up 39.7% on a 7.2% sales increase Operating Margin: Industrial Distribution 5.0%, Aerospace 15.9% Three acquisitions announced since September 1st

BLOOMFIELD, Conn., Nov 02, 2011 (BUSINESS WIRE) --

Kaman Corp. (NASDAQ GS: KAMN) today reported financial results for the third quarter ended September 30, 2011.

Neal J. Keating, Chairman, President and Chief Executive Officer, stated, "We continued to demonstrate strength across the majority of our businesses in the third quarter. In Industrial Distribution, we have maintained a steady pace of growth and our focus on profitability improvements continues to yield year-over-year gains. In Aerospace, strong demand across our product lines including bearing product lines, partially offset a delay in shipments of our Joint Programmable Fuzes. The Joint Programmable Fuze program is expected to return to acceptance testing in early November, after encountering acceptance test interruptions, and we expect to achieve our full year delivery target for the program.

"We continue to pursue acquisition opportunities in both business segments to supplement our organic growth and I am pleased that we have announced three acquisitions since the beginning of September - Vermont Composites in Aerospace; and Target Electronics and Plains Bearings in Industrial Distribution. In addition to acquisitions, we continue to develop a range of longer-term opportunities that we believe will enable us to deliver continued revenue growth and margin improvement. These opportunities include the unmanned K-MAX(R), two of which are undergoing final testing for deployment in Afghanistan. We are proud that along with our partner, Lockheed Martin, our aircraft will be performing a vital life saving role for the Marine Corps by the end of the year."

Segment reports follow:

Industrial Distribution segment sales increased 7.2% in the 2011 third quarter to $239.1 million compared to $223.1 million a year ago. Acquisitions contributed $1.1 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 6.7% over last year's third quarter (see Table 2 for additional details regarding the Company's sales per sales day performance). Segment operating income for the third quarter of 2011 was $11.9 million, a 39.7% increase from operating income of $8.5 million in the third quarter of 2010. The operating profit margin for the third quarter of 2011 was 5.0%. In comparison, the operating profit margin was 5.1% in the second quarter of 2011 and 3.8% in the third quarter of 2010.

Industrial Distribution segment sales for the third quarter of 2011 reflect continued positive market conditions. Market strength was broad based across most geographies, customers and end markets. Operating margin was higher on a year-over-year basis as a result of the higher sales volume, improved productivity resulting from IT investments and our organizational realignment, and continued gross margin improvement.

Aerospace segment sales were $117.4 million, a decrease of 13.9% from sales of $136.4 million in the third quarter of 2010. Operating income for the third quarter of 2011 was $18.7 million, compared to operating income of $19.0 million in the 2010 third quarter. The operating margin in this year's third quarter was 15.9% as compared to 13.9% (15.7% adjusted*) in the comparable period in the prior year. Third quarter 2011 results benefited as compared to the prior year period from higher sales of bearing product lines and the unmanned K-MAX(R) program. These increases were offset by lower deliveries associated with acceptance testing interruptions on the Joint Programmable Fuze program. During the third quarter approximately 1,200 JPF fuzes were delivered as compared to over 9,000 in the prior year period. The program is expected to return to acceptance testing in early November. Results in the prior year include a pre-tax charge of $2.0 million, or after-tax $0.05 per diluted share, related to the resolution of pricing associated with a customer contract.

Other

During the third quarter of 2010 the Company received a look-back interest payment of $6.6 million from the IRS, which was recorded as interest income, related to the Australian helicopter program. Net of tax, this resulted in income of $0.17 per diluted share.

Outlook

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

• Aerospace segment sales of approximately $560 million up 15% over 2010
• Aerospace operating margins of 15.3% to 15.5%
• Industrial Distribution sales of approximately $950 million up 14% over 2010
• Industrial Distribution segment operating margins of 4.8% to 5.0%
• Interest expense of approximately $12.0 million
• Corporate expenses of approximately $43.0 million to $44.0 million for the year
• Tax rate for the full year of approximately 34%
• Free cash flow* of $15 million to $20 million

The Aerospace outlook excludes contributions from the acquisition of Vermont Composites. 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, "We have essentially maintained our full year outlook for sales and operating profit for both of our businesses, but tightened it up a bit with three quarters of the year behind us. Order intake in our aerospace bearing product lines has been robust affirming our expectations for that business, and notwithstanding the delays in the JPF program, we expect to meet our full year outlook. Our Industrial Distribution business also remains on track with our previous full-year expectations, including a positive but slowing rate of sales growth. We continue to focus on total return to shareholders demonstrated by our recent 14% dividend increase and stock repurchases."

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, November 3, 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 organic 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 November 2, 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 condensed consolidated statement of cash flows 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; 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.

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.

SOURCE: Kaman Corp.

Kaman Corporation
Eric Remington, 860-243-6334
V.P., Investor Relations
Eric.Remington@kaman.com

Founded in 1986, Plains Bearing serves a broad range of customers in West Texas, primarily in the food processing, petrochemical and agriculture industries. Plains Bearing will become a full service Kaman location with access to Kaman’s full suite of mechanical, electrical, material handling, fluid power and motion control products and services.

“Plains Bearing is one of the leading independent bearing and power transmission distributors in its territory and an excellent addition to the Kaman sales and service network,” said Steven J. Smidler, President of Kaman Industrial Technologies. “The acquisition is another example of the execution of our strategy to expand geographically to service both local and national accounts with facilities in the region.”

“Our customers will benefit from a wider selection of products and world-class customer service,” said James Grusendorf, President of Plains Bearing. “We are pleased to have joined forces with the Kaman team.”

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 Industrial Technologies Corporation is a subsidiary of Kaman Corporation. Kaman Corporation (NASDAQ-GS: KAMN), 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.

Contact

David Mayer

Vice President, Marketing
(860) 687-5185
Dave.Mayer@Kaman.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 Remington
Kaman Corporation
(860) 243-6334
Eric.Remington@Kaman.com

Jim Melvin
VP Investor Relations VP Sales & Marketing
Kaman Aerostructures
(904) 485-1605
James.Melvin@Kaman.com

Kaman Corp. (NASDAQ-GS: KAMN) today announced that it intends to release its results for the third quarter ended September 30, 2011 on Wednesday, November 2, 2011. The following morning, the Company will host a conference call to discuss these results, which will be simultaneously broadcast live over the Internet. Neal Keating, Chairman, President and Chief Executive Officer, William Denninger, Senior Vice President and Chief Financial Officer, and Eric Remington, Vice President, Investor Relations, will host the call. The call will begin at 8:30 AM ET on Thursday, November 3, 2011.

Listeners may access the conference call live over the Internet through a link on the home page of the Company's website at:

http://www.kaman.com

Please allow fifteen minutes prior to the call to visit the site to download and install any necessary audio software.

The archived version of the call may be accessed at this site or by dialing 617-801-6888 (passcode: 23382815) beginning approximately two hours after the call ends, and will be available until November 11, 2011 11:59 PM ET.

SOURCE: Kaman Corp.

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