KAMN - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kaman Corporation Fourth Quarter 2019 Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

I would now like to hand the conference to your speaker today, Jamie Coogan, Vice President, Investor Relations and Business Development. sir. ahead, go Please

Jamie Coogan

Starr, like call. everyone are Conducting and and Chairman, I’d Financial and quarter Officer. Neal Kaman’s XXXX President, Rob Officer; Executive earnings the Chief Vice to morning. President to Chief welcome fourth Keating, Executive Good call today

Securities I’d its differ projections note statements results and company’s described of and XX-K filings in and underlying the economic earnings current current the business. our many we of evening during including respect The management, of to Form materially are those on forward-looking discussed other of filed our that financial expectations X-K future statements the economy the our any the together these the the assumptions its forth include begin, important latest results items, These could statements the Before call other revenue, statements will yesterday with setting and due earnings some events. in information or company’s future to business, today’s most and on performance Exchange and Form indicated consist release. like to of forward-looking future and on objectives statements plans of with XXXX factors, Commission, with report actual the which from the regarding of company company’s company

to and the yesterday’s Reconciliations information non-GAAP in measures are filed regulations. with that company’s as are to and applicable We X-K. measures expect in SEC financial release also rules certain discuss GAAP earnings defined included the measures

business, the the discussion continuing today’s light of results operations the of Finally, of will of please former the earnings sale in of note distribution the the focus company. be on that

Neal the I’ll that, call turn With Keating. to over

Neal Keating

expectations followed Good XXXX. a Rob the this financial update by year, of for more morning, and quarter Thank operational start over our some XXXX quarter and our joining to the and for earnings call you, results discussion and before providing highlights full morning passing call. by the business for for I’ll you on fourth thank quarter detailed Jamie. everyone,

with grew fourth million, I’m Aerospace XX.X% and by our for operating products, results or to contributed fourth margin the $XXX.X for strong to JPF at as demand revenue Overall, of which driven quarter pleased Specialty XX% our quarter adjusted. Bearings X.X%

our on results. margin operations full at year. Sales were outlook to operating the end year the Aerospace of Touching high increased and Sales XXXX former million. X.X% absence for This continuing $XXX.X from unfavorable over at an $X.X Services were businesses, $X.X by Engineering headwind foreign U.K. Tooling the XXXX. and in million million impacted was from which divested sales growth of of and our currency in our

operations million. the divestiture year year. at continuing items, engineered at Aerospace of into of had the adjusted from our driven these year with increase by and business was began strategic for our contributed in growth the transformational repositioning which highly Kaman, of or products, XX% XXXX operating margin top Operating $XXX distribution income company we Excluding X.X%. was as a XX.X% laid line XX.X% the XXXX the the leading for business to future, provider prior underlying the a of August for approximately in of our over foundation

enhances are Bal internal January industry-leading and delivers industrial successfully to is Bal XXX integration our closed largest in the working welcome margin employees of the management our provider medical is both position We products, identify the the acquisition The of engineered their Seal throughout highly expansion addition Seal contacts. and cash as as tracking highly X, leading globe the Bal and applications, team teams the markets, Seal we access to Engineering, and we synergy broadens of provider our springs history. thereafter, acquisition in and of our to and seals, growth Bal Kaman acquisition Shortly year such Seal organization. a to organization. engineered an The closely the announced on accretion high opportunities and around one. technologies expectations, of

fourth our are focused we on general continued the progress previously expenses cost-reduction to and administrative reducing Additionally, make and our stated quarter, on in goals. achieving

made we in still our XXXX, transformation stages. early Although is progress in significant the

We pursue continue strategy. fit additional to that our opportunities acquisition well with

in long-term strengthen approximately financial We have available our capacity and that will seeking current significant improved deploy to debt competitive with companies growth million $XXX opportunities. cash are and position and provide

We’ve our will help identifying globe. that lead in investments demand, us in disciplined our we overall and strategy, times, to future the patient internal These and as fit remain opportunities efficiency. importantly, are also metrics. approach end, that meet improve operations to in investing across To been to and return reduce our culture designed

In have our new we position growth. for to increased us products investments future addition, in

Some the blade rotor the composite examples unmanned and development of capabilities for include next the a of generation K-MAX.

Bearings, New technology, us which will munition enable for Specialty as applications. and new into to of sensor materials such expand our advanced height burst

JPF fuses XX,XXX our In in record year. fourth for full quarter a shipped and we XX,XXX the program, the over fuses

DCS more secured see we During than demand this for strong additional million to added to two JPF contracts, continue product. XXXX, which and $XX we backlog,

in levels Our to between over above XX,XXX even JPF in XX,XXX, of end record is XXXX. the the backlog unit at $XXX increase million, the we deliveries and and XXXX expect year to

was rates growth XXXX, aftermarket ended year. same the forward record And rates the with these is the XXXX. products order products we intake. Bearing engine order and sales We saw XXXX were our these and order in that over see and period year pleased performance significantly product to carried nicely throughout Specialty momentum up components, with and led into this self-lubricating for for operating our strong to Engineered products profit by Our contributed

grounding impact XXXMAX of top Boeing have an Currently, XXXX. we the line million $XX project our approximately results in will on

increased business. underlying the the remains products business diverse strong across the the remainder platforms rates in and due strong of the growth our in range However, to order of and backlog

program. K-MAX our to Moving

our great in North Asia reach we traction to expand and sales and base. Europe as good operators of see inroads to We’ve capabilities operators work efforts our and look are both continue to ways for geographies. new with to expand and America, continuing to We made the customer

announced a strategic K-MAX Middle market the the we another across opportunities Arab in in expansion on East, and efforts. Emirates recently, our distribution focused step agreement Just United

I’m to efforts with improved improvement awards supplier our performance by also XXXX, in structures Not want progress during we’ve programs. and across continued with made year. results a saw in recognition we but customers pleased we number in structures for During thank team financial significant our their our honored of improvement programs. only our this the the we did were recognize a driving

monitoring chain, the coronavirus. China and in potential are we any any regarding remain this in assessing are business stage, command. to expect, seeing elsewhere would we impact the or you impacts closely to diligent supply but significant situation associated our At As not

a long-term at shareholder to for value. growth, In like closing, our very positions been would I’m and customers’ thank transformation. as future together Kaman have for very proud employees of we demanding I made time through of XXXX. progress we enable their all to completed Kaman, we efforts the drive our better The this in It’s serve us will work work continued and needs

the at the call closer to Rob Rob? look over turn I’ll numbers. a for Now,

Rob Starr

by increased volume of $XXX.X the Thank on fourth revenue gross our you, our higher or We to of our morning, fourth and sales for products. quarter JPF Specialty X.X% good recognized million DCS, Net margin for Neal, deliveries to and year, program Bearing delivered USG compared the performance when everyone. strong the JPF for driven XX.X% prior quarter.

in year, margin the in period due modestly part to prior in the comparable lower However, of JPF sales quarter. than was the mix the the

million, in a the $XX the fourth prior period and continuing $X.X business million million to $X.X increase at mix associated period earned to million services Operating million XXXX. with sales with former X.X% of the million transition in development decreased relative transaction from the $XX.X $XX.X costs income XXXX. agreement of JPF from due quarter distribution our was in in the income quarter in to of corporate costs, fourth Aerospace the $XX.X over the Operating operations and

period received basis, of the or $XX.X prior operations year over adjusted the sales. continuing compared million from primarily $XX.X significantly an share profit On to year sales increased operating earnings or of of per of XX.X% million Diluted was $X.XX, XX.X% benefit UK an from of items, prior when to tax $X.XX of period, earnings per diluted for the was Adjusting XXXX. entity the this representing finish purposes. election to we our for and change share of in other the treatment $X.XX U.S. to due number strong a a

related initiatives. costs to associated Bal and due reduction G&A the increased to Seal expenses Corporate our acquisition with of activities

have good end of the range. million realized with these of exit to and of We XXXX made on line high stated approximately initiatives sight savings $X clear previously and our progress

as have they from human tax, services. of terms IT, the reminder, provide a As and to certain shared such distribution agreed transition we to pursuant services, resources as sale, Kaman’s away the treasury,

IT most expect and been separate XXXX. these are transitioned, services to have of the we third fully of by quarter While activities the to continuing transition

We basis. the to cost and income on report quarterly will a associated continue both

$X.X During expect expense XXXX, for $X in net approximately incurred we million XXXX. of incur services a million to net expense these and in

outlook XXXX. to for Moving our

million X%, approximately sales Seal expect of anticipate the line performance $XXX Bal X% We with range organic in $XXX the to growth $XX for to contributing to million of year. sales top our million. We

our million volume expectations the that SH-X approximate a implies headwind approximately completion with on our in AH-XZ of This muted X% the the from an and growth XXXMAX lower headwind by organic $XX million $XX.X Our growth impact of are organic of business Peru and program slightly expects from XXXX. remaining program.

former expect of development of well related margins $XX.X of related to million activities of we costs corporate G&A $XX margins range XX.X%. Adjusted consolidated X% Seal. initiatives, million include to Bal items, to expenses business our accounting purchase services Operating operating distribution as XXXX and the for these XX% for to transition X.X% in as for our

XX% EBITDA XXX addition adjusted expect of to is expected and the sales Seal, XX.X%, improved range of a over year, from from improvement This adjusted benefit at structures midpoint our to XXXX partial our distribution. in inclusive mix Bal of a higher due over efforts. our from consolidated programs adjusted margin for XXXX basis EBITDA basis our We sales anticipated our a increase point performance the in and and results deliver the to point the XXXX EBITDA margin level cost-reduction over the improvement XXX the of

in be from flow cash to of to $XX in million the We from million operations to $XX range operating expect flow XXXX free to leading million cash $XX $XX of continuing million. activities

for periodic approximately see expense will net $XX pension estimate our benefit annualized at approximately $XX.X million. Expect rate approximately XX%. we of interest the year tax of Additionally, and million

Finally weighed half first the in half and cadence of be with the prior years, earnings with half consistent XXXX, XX% towards earnings expect approximately to the of our in of second of approximately earnings we the second XX% XXXX. of

call the turn over to Neal. will I that, back With

Neal Keating

Thanks, Rob.

positioned We as drive and XXXX well are execution initiatives. through to across our businesses strong corporate value we enter

Finally, I hard our year. would their during like for work employees to thank the

about All and our of on ahead to us forward XXXX everyone in look updating excited the are continued opportunities progress.

I’ll over that, the With turn to Jamie. back Jamie? call

Jamie Coogan

we have the may Operator, question, please. first

Operator

Markets. from Capital Thank first you. Barger [Operator Our question KeyBanc Steve Instructions] with comes

is Your now line open.

Steve Barger

guys. Hey, good morning,

Neal Keating

morning, Good Steve.

Rob Starr

Good morning, Steve.

Steve Barger

guidance four quarters? through Rob, about the you expect just Do puts there. takes growth thinking you growth and the go I all positive organic and heard organic in

Rob Starr

an change sales would question, And a can yes. in most our think yes. appreciate, the move but in small that’s no, you is, I likely, be Yes, as excellent between be, timing particular There expectation the Steve. with quarters, can shipment may meaningfully answer JPF,

Steve Barger

of if way? kind that minus, see margin keeping double-digit can that what’s And higher lot Bal through is the expectation contribution you midpoint the know, talk or from the low of lid what range plus margin. is What’s Or incremental think be growth, XX%, Okay. suggests of envision? And incrementals coming a on margin is growth. of what about on operating portfolio longer-term on a you which the I guidance will it I – you Seal, incremental for

Rob Starr

of there improvement Steve, the on higher-margin correct. as And don’t we’re view some could the to focused mean, We and as businesses. efficiencies. you certainly and a recognize our cost reductions at we’re why that Yes, of XXXX, depending some is at on Seal very we certainly benefit make we of our in kind to I out that. to guidance certainly are see mid-range. that’s growth opportunity, exit XXXX, certainly provide on G&A continue upside is I of but structure, Bal we’re We think XX.X% seeing important what’s and we

Steve Barger

about the the is is future? about would Or in think you think But I you how you forward, as about guess, be that think you going incremental portfolio? portfolio how this think more a kind this the floor of and of of to M&A beaten XX.X% the

Rob Starr

focus opportunity, to we I engineered there about portfolio. do think highly the based when of relative balance products efforts M&A the better the Yes, on our Steve, to M&A think is of on certainly

is could to certainly, our improve in on We north. depending to that, which focused up predict. certainly to hard So M&A we’re on really activity, see cost and incremental improving upside structure margin

Steve Barger

Yes.

last into built incremental pipeline one you from heard hard EPS for so the me. expect based revenue And know guide, and but can you just for it’s do should reasonably XXXX? contribution I predict, see we to not and on in what you I it’s new M&A, say now the right think

Rob Starr

Yes, that. on comment Steve, really I can’t

targets, transactions very you identify can to As do to have we but those M&A an appreciate, active predict. effort are difficult

working. Neal to, diligently alluded have as And So capital. do we we significant are

Our balance terrific sheet shape. is in

similar Bal target, terrific. right the find would Seal to pushing certainly we’re be something So to

Steve Barger

Thanks. line. in back jump I’ll Yes.

Rob Starr

Thank you.

Operator

you. Thank

Company. from Our comes next & question Sidoti with Marshall Edward

line open. now Your is

Edward Marshall

kind business? revenue Just guys. It looks there $XX XXXX unusual something for Bal going anticipated revenue expected XXXX. on? to piece ask in understand no initial million. are talked flat when morning, Is for There’s release; that wanted Good of Seal I you the divested you you the trying you Seal. you? Or guidance on Bal what of a growth like why this? of purchased press How to is Have about around the growth year-to-year. in that

Rob Starr

digits, that We industrial acquired things. some XXXX which No. expectations in that they in growing tell with Ed, of is those the of the business. you can expectations. good a that our points have A there if really would we have And markets. below balance When experiencing What carve you weakness sales couple business for for do growth expected. we a what the accounts, marginally kind single is of is knew in their The out. couple couple in observation. some of XXXX pressure high are I come of we a their have potential were them, which of

we matters but to a the positive couple of generation. through, we on flow So have of business, account strong very work very kind remain cash

very Bal both drive we’re to their with with to other very outlook the with Seal of and are overall, So working team growth. XXXX sales closely pleased identify and types for opportunities

Edward Marshall

that shake maybe the million that Could Got the $XX it. how you up? produce – they million? component that EBITDA deal DNA in, And roughly $XX what’s in the sum accounting does up, of

Rob Starr

Yes.

to be in in So, we’re XXXX. of $XX expecting million the Bal neighborhood Seal DNA roughly about

DNA of As intangibles. somewhere to complex. numbers appreciate can Those But it’s aren’t some purchase working you $X yet of can the million accounting. the accounting, still purchase $X And with appreciate, we’re going see relating to in as million about final. you we’re the to drag through range

Edward Marshall

Right.

XXXMAX guess, I a in your customer restarts? the the consistent restarts? does expectations? ask $XX March. On revenue does ask indicated in the in as a XXXMAX, production side XXXX. million competitor, you drag production – well I that about for structure there’s restarting What that assume reason structures that a I is The the with talked on reason is there’s The as Is

Neal Keating

Ed, It’s Neal. good morning.

what we’re be. Boeing that to worked of probably perhaps in that to, timeframe and what looking Safran deliveries working The referring who may and through, their at think is a later. been way to it little have are year is target I stated combination at for on a the is bit you publicly Spirit, with we’ve it may looking GE

not that, figures, we And our but So our million that our Bearings of necessarily XXX – deliveries. down weighted Specialty year, ship as XXX And to for about growth. delivery that’s can year-to-year our three taking the and you we very as between million sets is Boeings’ a higher towards look about at those come to us, heavily imagine of business, for as margin. $XX out $XX so well about deliveries,

of – So a about we’re about year. half considering losing half

Edward Marshall

Okay. [Audio XXX About a original six and month, XX is the Dip] roughly? that a months, on shipsets year

Neal Keating

at XX looking baseline they been that since of we’re had month we most at. the for were, was Actually, working Yes. XX a

able that have going product higher before. So, that about some we’ve add aircraft content as we to on been out about aircraft, to had $XX,XXX talked new since we’re we know of to going the

about aircraft looking per in for the range So we’re balance. of $XX,XXX the

Edward Marshall

it. Got

I was into. might that update on – get the an trying shaping what the what wanted finally, And that years? up over few and back D/B And to I to That’s then rollout? Okay. the see just say, how you XXX of kind next-generation next,

Neal Keating

$XXX and XX, we’re with get when in million in at backlog backlog Ed, both JPF continue our be XX expect to to us options, working half comfortable of year, that today, takes this looking to XXXX. to Force which the U.S. Obviously, very first with we Air we out the of on product.

So, is you know, demand, we has even not that’s feel before which, pretty consistent that we in very been good years. for about – foreign that us additional as consider and recent

thing is other use, and with we to cost doing. where very feel The we’re to to we at that but the have continue reliability comfortable know also product we of the what when we we work look are, in that’s reduce the

So we feel about we’re where now. at good right pretty

Edward Marshall

Great. like it’s much. in It good very appreciate guys. shape. sounds I Thanks it,

Rob Starr

Okay. Ed. you, Thank

Neal Keating

Ed. you, Thank

Operator

next Instructions] question [Operator Seifman Seth with from JPMorgan. Our comes

open. now is line Your

Seth Seifman

Thanks very much good morning. and

Rob Starr

Good morning.

Neal Keating

Seth. Good morning,

Seth Seifman

for about if wondering million guidance we as million like that the million, million be to go that’s about were that exiting seems in $XX like $XX toward target the And of of if bringing SG&A. look I $XX around it this $XX seems at level you corporate. want you progression EBIT. million. legacy Aerospace, business, to you into kind the XXXX, down last And year of of of kind and just about the the to guess, of down what you’re And maybe of be So $XX implied

of Should in year? low that fourth through in we as the kind amount move significant kind corporate think quarter. about implies reductions it expense So, we a very of the

Rob Starr

Yes. of Rob. this A Seth, things. is couple

Going expense. guidance we any be it forward, corporate in XXXX, providing as to will separate not relates

We’re to income full just clarify guide, just that. so operating want doing a

As it relates about $X savings. already million rate on realized to where on a we basis are, the run we’ve

will previously. had those achieving focus some importance will the of us. is you do also the well we our cadence, recognize XXXX, our we positive are way the achieving accumulating, you a savings the which major towards that reason are very impact we earnings through on you Part see imagine, we’re results. guided of We of on way for can range expect as We that. So, seeing run a is that that you as have the that –

about talked end we’ve to So, we as the exit do remain so. on reaching rate of the high a towards track XXXX range and

Seth Seifman

All right.

on just question on Great. then last following on – Okay. And the up JPF.

about You give which versus about deliveries. of And will sustainable beyond, we can JPF incremental moving you the think level you for sense XXXX then higher XXXX? a potential in you us level do be higher see level talked growth? revenues kind a of about or much that I a XXXX the as mean, how think when off

Neal Keating

it’s Neal. Seth,

range be backlog meet units great the years. job. kind done a given worked see comfortable team and the we XX,XXX That’s leadership sustainable that as has think a that with. that $XXX consistently rate feel the of XXXX. to look the under next into very at that as you backlog output for option few XX,XXX of we able I Rickets that think for Jerry to We’ve of XX XX and We to million before going that

Seth Seifman

questions of now. care Thanks much. for takes my very That Yes. okay. Great,

Neal Keating

you, Thank Seth.

Rob Starr

you, Thank Seth.

Operator

you. next from Steve Our with question Barger Capital Thank Markets. KeyBanc [Operator comes Instructions]

open. Your now line is

Steve Barger

Hi, thanks.

about Or metrics requirements? characteristics? margin how accretion M&A, free deal what remind back can of flow your necessary or going are to just terms timing, us in expectations Just think you you cash

Rob Starr

Yes.

looking mean, look So, with negative accounting reduce our hill I the we when – as significant of in of is look you us a role. we this accretion, as purchase mean, certainly, That to flow would would adjustments at transactions metric, capital. certainly when tall do evaluate our cost Seal, a or excess Bal to well plays we a very climb. of assumption appreciate, that as an $XX million that’s IRR cash we think IRR, we adjustments. I from about eliminate year, critical you very But for at a perspective, appreciate,

looking flow are cash for contributors. strong We

those a synergistic acquisition and into the is we really, key that macros as that important our opportunities. So really well absolutely at understanding: us how what’s acquisitions fit look criteria and well technology, one, are for how portfolio. is they as the And behind

the medical hopefully, really Bal the Bal for is – Kaman focus just us, call, technology Seal for way, number for an this folks instruments us, the on Seal on those of by acquisition – think, to on in that morning. I call ideal them market. and into the listening That are and a the welcome are given very

space, the we’re So just for the performance deploy across absolutely have going A&D as is look to to we’re capital. the continue strong and us for products going engineered and been. essential financial trigger to we medical when pull And

Neal Keating

And and Steve, management the at team other really engineering us attractive things was team, Seal. that strong very the Bal operations to were team

of those the the financial us add performance to those are us. drive look at we and capability be enable new So able to that – companies to clearly

are returns. So things for, that help the we look financial that really drive those those other

Steve Barger

Yes.

feel you’re things enough trying it you like about that As bigger pool really or for, sizable definitions? hard of meet out you find there? there’s characteristics that that size the that do those a finding to maybe looking Or have is think work companies

Neal Keating

opportunity we there’s that us. for Steve, think good

will say work we’ll that We it. hard at

to bolt-on smaller-to-midsized be and but Seal of is for we’re aperture work another up have that it of good platform saying us that the So there’s at targets. hard other of acquisitions markets also, acquisition for growth. more going as we into to of the can opened ceiling, the kinds in advantages where not use Bal do of one think that universe of we a I And shy it,

marketing, good bring right to hard also the right So we to cetera. of you identify company advantage into we the might and it work sales for plan it your now have synergies et that a be companies we price where to bring pretty and then is feel that and able always good able to the of for right and take operations, are have of we home kinds into every and integrating can – it the across fold. about But be Kaman opportunity some to operations at the

Steve Barger

to company, Yes. M&A. small with of less you’re rank going in looking you and more right trying a and you now? what Kaman team, for the is the lot just what’s have you’re still Neal? order of conversation focused Can do most that Or a relatively and on on terms new kind integration the most pressing with

Neal Keating

– because with always able foundation think processes to that organically. I future we through can our think number of robotics we the automation focus diffusion to help our two, to all, the certainly K-MAX, of It than or then drive able our our people are that’s sure ago, capabilities is And then, to without us important. where one, titanium and with costs we our make technologies, and serve. and business. the to a we first that what is growth that year and strong that’s of on recognize demands, acquisition like it’s advantage for add where drives taking identify that while size can we structure be unmanned I in keep cost it of company. companies the competitive certainly, our investments starts need relative some really made were that doing we today that, have aligning Number advanced we execution question, to company customer meet our like new to heartening, we new us And and strengthen expand those can eyes position smaller drive markets building And be to a that that open we down. our for on

really So it’s to and a we it’s combination And it’s on, XXXX. where Steve. have areas I think – focus job good I one into XXXX of we’ve think various through a that done

we for very than We’re a And were a outlook, a strong year XXXX we think, very beyond. have different company and ago. we

Steve Barger

and just guess, thoughts Analyst company portfolio very know a about were, about the progressing thought on, I the point time? you how to I about you being this process see explaining Yes. to but the that a investment than maybe over updated different going have any you on community lot Day? more clearly what’s

Neal Keating

Steve, company, you’re more us that probably a that even. have that. focus do active do very exactly would and that an – different next are opportunity that. And and call, internally on we’ll that about provide to we message certainly, But right. with the out, we and Day been we discussions maybe being And on we’ve to do certainly, recognize able to put the more getting Investor talk

Steve Barger

Great. Thank you.

Neal Keating

Okay. you, Thank Steve.

Rob Starr

Thanks, Steve.

Operator

Thank you.

Our next Seifman from question Seth with comes JPMorgan.

is now open. line Your

Seth Seifman

Hey.

a report sure, I just just to follow-up. quick forward, XXXX and So, you plan do to make legacy Bal still here? as segment wanted going Seal separately we go through

Rob Starr

we operation. going going a forward, reporting, we’re segment understand, as as is answer as single to far short the Seth, be Yes.

a Seal not Bal we So, separate will be providing as entity.

where are. that’s we So

Seth Michael

be level? and a the kind will whole of Okay. revenue But there then corporate EBIT adjusted or at just segment

Rob Starr

at just No, the Yes. whole corporate level.

Seth Michael

Right.

items, some a standpoint return in about of do and a I things aero opportunities from evolving? attractive standpoint, that out where aero there And and then there you should aero, attractive the your things think I headed you. some and the are just from we might aero target structure non-aero you things be, end are opportunities okay. updated about think that Okay, maybe you as guess, M&A commercial that are how guess, about kind market where & thoughts. less defense, between think Got that of outside return

Neal Keating

Seth, in Bearings more emphasizing our investments, our organic would lower-margin I down acquisitions think structures one, into break we engineered have products Specialty both to growth, that a really production, it opposed few as been efficiency area different we area. areas: number and and

continue So, know that space. We’d was we good I to like Bearing it our us, relies first and grow. engineered thing. performance leverage in we Aerospace that in It had for really is but that’s more then our we the within the – Specialty and one structures very opportunity, Specialty – market, those, upside And that think and improvement products.

good to the think industrial GRW parts to us the that. and in example the proven enabled automation more of market. into market, and have a more I in industrial, That robotics of expand was medical and so which acquisition the industrial be

So, our there mix in Seal because Bal acquisition they we’ve had of industrial, very that had. aerospace, that informed of and results good the and medical of markets part

the I Aerospace. will we acquisitions be think that across at it a interested unique most advantage or in, be those would as intellectual have we So competitive you property look where that

have We a mix, commercial and today. good almost XX-XX, defense between

like that we mix. So

you that several despite of the can programs, on. the as it including see growth platforms diversity think XXX, we’ve so from and products organic the I we’re highlights year-to-year, that got from headwind

like that I and a going industrial lot. think the specialized we more markets activity medical that forward. markets see So But in you’ll

Seth Michael

Thanks. Great.

all Thanks additional yes, So, from color. much very for the me. that’s

Rob Starr

you. Thank

Neal Keating

Thank you, Seth.

Operator

you. I’m now would further call this showing not questions Coogan over at any back Jamie like to call Thank I to closing turn at to remarks. back the any time. over further questions Jamie this for

Jamie Coogan

speaking conference first we you look you again to report us on Thank joining quarter today’s results. with call. when We our for forward

Operator

conference call. participating. Ladies Thank for and gentlemen, this you concludes today’s

may You now disconnect.

Kaman (KAMN) 25 Feb 202019 Q4 Earnings call transcript