8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): December 1, 2009

Kaman Corporation

(Exact Name of Registrant as Specified in Its Charter)

Connecticut

(State or Other Jurisdiction of Incorporation)

0-1093	06-0613548
(Commission File Number)	(IRS Employer Identification No.)
1332 Blue Hills Avenue, Bloomfield, Connecticut	06002
(Address of Principal Executive Offices)	(Zip Code)

(860) 243-7100

(Registrant's Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 7.01                      Regulation FD Disclosure.

From time to time, members of the Company’s senior management present information about the Company to investors.  A copy of the investor presentation dated December 1, 2009 is attached as Exhibit 99.1.  Such material may be presented to investors in the future.

The information in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01                      Financial Statements and Exhibits.

(c) Exhibits.

Exhibit 99.1 Investor Presentation dated December 1, 2009.  

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

KAMAN CORPORATION
By:	/s/ Candace A. Clark
	Candace A. Clark
	Senior Vice President and
	Chief Legal Officer

Date: December 1, 2009

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KAMAN CORPORATION AND SUBSIDIARIES

Index to Exhibits

Exhibit 99.1 Investor Presentation dated December 1, 2009.

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EX-99.1

Kaman Corporation (NASDAQ-GS: KAMN)

Kaman Corporation (NASDAQ-GS: KAMN)

Investor Presentation

December 2009

2

KAMAN CORPORATION - Investment Highlights

üHigh margin aerospace business led by specialty bearing product lines

üIndustrial distribution business gaining market share in a fragmented
market via national account growth, geographic and product line
expansion

üLong-term organic growth opportunities in both segments

üPotential to accelerate growth and increase scale through acquisitions

üInitiatives to optimize profit, increase cash flow generation, strengthen
competitive position

üStrong balance sheet to fund growth and strategic initiatives

3

KAMAN CORPORATION - Overview

Nine month YTD sales
thru 10/2/09 $877 million

Two business segments

4

Source:Boeing and Airbus historical data and ISM

AEROSPACE ORDERS and DELIVERIES VS. ISM INDEX OVER TIME

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üDecember 2007 - Sold Music segment to Fender focusing the company on

its core industrial distribution and aerospace businesses

ü2008 - Completed first acquisition in aerospace since 2002 and first
acquisitions in industrial distribution since 2003

üFebruary 2009 - Took title to eleven Kaman manufactured SH-2G helicopters
under a previously negotiated settlement with the Commonwealth of Australia

üJuly 2009 - Received a contract modification award for the JPF program
significantly improving profit on U.S. Government sales

RECENT SIGNIFICANT EVENTS

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üAugust 2009 - Awarded contract to demonstrate unmanned version of the

company’s K-MAX® helicopter to the U.S. Marine Corps

üAugust 2009 - Introduced the proprietary ReliaMark™ brand of power
transmission products

üAugust 2009 - Awarded a five year potentially $53 million program to provide

composite helicopter blade skins and skin core assemblies for Bell
Helicopter

üAugust 2009 - $200 million Shelf registration (S-3) took effect

üSeptember 2009 - Completed new three year $225 million revolving credit
facility

RECENT SIGNIFICANT EVENTS

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RECENT KEY APPOINTMENTS

üNeal Keating, Chairman, President and CEO

üThomas Rabaut, Director

üGreg Steiner, President, Kaman Aerospace Group

üBill Denninger, Senior Vice President and CFO

üPhil Goodrich, Vice President - Business Development

üWilliam Higgins, Director

üRob Starr, Vice President and Treasurer

üGeorge Minnich, Director

üSteven Smidler, Senior Vice President and COO, Kaman Industrial
Technologies

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INDUSTRIAL DISTRIBUTION SEGMENT

2009 YTD Nine Month Sales $496 million

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INDUSTRIAL DISTRIBUTION SEGMENT

Third largest industrial distribution firm serving $13 billion of a $23 billion power
transmission market.

185 branches and 5 distribution centers

Major product categories:

§Bearings

§Mechanical and electrical power transmission

§Motion control

§Material handling

§Fluid power

Statistics

§CAGR 2003 to 2008 = 9.3%

§Sales per employee $435,000

§1,700 employees (approximately one third outside sales)

§SKUs 3.25 million

§48,000 customers

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INDUSTRIAL DISTRIBUTION SEGMENT

Strategy:

§Expand our geographic footprint in major industrial markets to enhance our
position in the competition for national and regional accounts

§Broaden our product offerings to gain additional business from existing
customers and new opportunities from a wider slice of the market

Customers:

§Broad cross section of industry with 48,000 customers served from local
branches in 72 of the top 100 U.S. Industrial markets.Growing national
account base.

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INDUSTRIAL DISTRIBUTION SEGMENT

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INDUSTRIAL DISTRIBUTION SEGMENT - Key Suppliers

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AEROSPACE SEGMENT

2009 YTD Nine Month Sales $381 million

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Commercial

Military

Business/Regional

28%

69%

3%

Note:Based on YTD sales at 10/2/09

AEROSPACE - Business Mix

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AEROSPACE - Aerospace Bearing Products

Machineable Self-Lubricating Bearings

Brands KAron®, KAtherm®, KAcarb®, and others,

Custom Air Frame Bearings

§Fraslip® and other brands

§Plain and self-lubricating sliding bearings, ball bearings

§Customized to meet specialized customer requirements in demanding aerospace

and industrial applications

Low-Maintenance Flexible Couplings

§KAflex® and Tufflex® brands

§Used extensively in the main and tail rotor drive systems of helicopters

§Custom-designed and engineered for each application

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AEROSPACE - Aerospace Bearing Products

Aerospace and niche industrial markets.

§Fixed Wing (Commercial, Military)

Flight Controls

Landing Gear and Doors

Engines and Accessories

§Helicopters (Commercial, Military)

Rotor System and Controls

Landing Gear and Doors

Engines and Accessories

Main Engine and Tail Rotor Driveshaft Systems

§Spacecraft, Submarines, Launch Vehicles and Satellites

Flight Controls

Power Systems

Solar Array Deployment Systems

Hatches and Doors

§Industrial

Hydropower Systems

Motor Sport - Steering and Suspension Systems

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AEROSPACE - Metallic and Composite Structures

JACKSONVILLE, FL

WICHITA, KS

DARWEN, UK

Capabilities:

§Build-to-Print manufacturing of metal and
composite structures and assemblies

§Composite tooling design and manufacture

Major Customers:

§Sikorsky, Boeing IDS, BAe, Spirit, Airbus,
Boeing Commercial, Aircell

Core Competencies:

§Sheet Metal Fabrication

§Composite Part Fabrication

§Tooling design and manufacture

§Aircraft Structure Assembly

§Program Management

§Supply Chain Management

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AEROSPACE - Helicopter Services

Aftermarket Business

§SH-2G Naval Helicopter - Support and Upgrades

§K-MAX Commercial Helicopter Support

§Blade Overhaul, Repairs, and Erosion Coating

HeliworX Subcontract Business

§Bell blade skins and skin core assemblies

§MDHI Explorer Rotor Blade System

§Sikorsky - H-60 Blackhawk

§Northrop Grumman Hawkeye

§A-10 Re-wing Program

§Small Composite Main Rotor Blade (SCRB)

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Unmanned Airborne Systems (UAS) - Unmanned K-MAX

AEROSPACE - Helicopter Services

§Teamed with Lockheed Martin to develop an
unmanned version of the Kaman K-Max
commercial helicopter for the U.S. Military

§The recent decision to postpone the demonstration
from December was made in conjunction with the
Marine Corps

§Demonstration for the U.S. Marine Corps now
scheduled for Q1 2010

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AEROSPACE - New Bell Blade Program

Customer / Contract Overview

§Bell Helicopter - Textron

§Fort Worth, Texas

§Award - 28 August 2009

§$53M / Five-Year Program

Product Description / Application

§Main Rotor Blade Composite Skins and Skin / Core Assemblies

§18 Total Part Numbers

§Bell Models - H1, 406, 407, 412, 427, 429, 430 and BA609

Composite Materials

§Fiberglass & Graphite Pre-Impregnated (Prepreg) Material

§Nomex Honeycomb Core

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HARPOON

FMU-139

TOMAHAWK

STANDARD
MISSILE

SLAM-ER

AMRAAM

KPP Fuzes are on a Majority of Major Weapons
Systems

STANDARD
MISSILE

JPF

SLAM-ER

TOMAHAWK

AMRAAM

MAVERICK

AGM-65M

AEROSPACE - Fuzing Systems

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OUTLOOK

Aerospace segment

§Full year 2009 sales expected to be up 5% to 7% year-over-year

§Operating margin for 2009 expected to be in the “mid-teens”

§Stable military programs - limited near term impact from DOD reductions

Industrial Distribution segment

§Full year 2009 sales are expected to decline toward the high end of stated range
of down 10% to 15%

§Full year 2009 operating margin is expected to be between 2.1% and 2.5%

Cash Flow

§Full year 2009 free cash flow is expected to be between $35M and $40M

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OPPORTUNITIES

üMarket recovery - Industrial Distribution

üRamp up programs

-A-10 re-wing

-Bell blades

-B787

-JSF

-A380

üAcquisitions - both businesses

üSale of SH-2(I) helicopters

üUnmanned K-MAX program

üContinuation of outsourcing trend - primes and super tier 1’s

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FINANCIAL REVIEW

43%

2009 YTD Nine Month Sales $887 million

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1 Corporate expense percentage is to Total Sales

(In thousands) SEGMENTS	Net Sales		Operating Income/(Loss)		Operating Margin
	Q3 2009	Q3 2008	Q3 2009	Q3 2008	Q3 2009	Q3 2008
Industrial Distribution	$162,921	$204,275	$3,388	$10,704	2.1%	5.2%
Aerospace	126,980	130,858	19,906	20,865	15.7%	15.9%
Net gain/(loss) on sale of assets			(3)	301
Corporate expense			(8,625)	(7,422)	1 (3.0%)	1(2.2%)
Sales/Op. inc. from continuing ops	$289,901	$335,133	$14,666	$24,448	5.1%	7.3%

INCOME STATEMENT HIGHLIGHTS
For quarters ended October 2, 2009 and September 26, 2008

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1 Corporate expense percentage is to Total Sales

(In thousands) SEGMENTS	Net Sales		Operating Income/(Loss)		Operating Margin
	YTD 2009	YTD 2008	YTD 2009	YTD 2008	YTD 2009	YTD 2008
Industrial Distribution	$495,781	$589,773	$9,232	$29,512	1.9%	5.0%
Aerospace	381,378	347,426	56,803	46,920	14.9%	13.5%
Net gain/(loss) on sale of assets			37	94
Corporate expense			(25,836)	(23,704)	1 (2.9%)	1(2.5%)
Sales/Op. inc. from continuing ops	$877,159	$937,199	$40,236	$52,822	4.6%	5.6%

INCOME STATEMENT HIGHLIGHTS
For nine months ended October 2, 2009 and September 26, 2008

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(In Millions)	As of 10/2/09	As of 12/31/08	As of 12/31/07
Cash and Cash Equivalents	$16.6	$8.2	$73.9
Notes Payable and Long-term Debt	$78.7	$94.2	$12.9
Shareholders’ Equity	$299.8	$274.3	$394.5
Debt as % of Total Capitalization	20.8%	25.6%	3.2%
Capital Expenditures (YTD Continuing Operations)	$8.9	$16.0	$14.2
Depreciation & Amortization (YTD Continuing Operations)	$11.8	$12.8	$9.9

BALANCE SHEET AND CAPITAL FACTORS

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Sales

EPS

Stock Price (one year)

Return on Invested Capital

PERFORMANCE METRICS

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Forward-Looking Statements

This presentation may contain 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) domestic and foreign
economic and competitive conditions in markets served by the company, particularly the defense, commercial aviation and industrial
production markets; 5) risks associated with successful implementation and ramp up of significant new programs; 6) management's
success in resolving operational issues at the Aerostructures Wichita facility;7) successful negotiation of the Sikorsky Canadian MH-
92program; 8) successful resale of the SH-2G(I) aircraft, equipment and spare parts;9) 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; 10) satisfactory resolution of the company’s
litigation relating to the FMU-143 program; 11) continued support of the existing K-MAX helicopter fleet, including sale of existing K-
MAX spare parts inventory; 12) cost growth in connection with environmental remediation activities at the Bloomfield, Moosup and
New Hartford, CT facilities and our U.K. facilities; 13) profitable integration of acquired businesses into the company's operations; 14)
changes in supplier sales or vendor incentive policies; 15) the effects of price increases or decreases; 16) the effects of pension
regulations, pension plan assumptions and future contributions; 17) future levels of indebtedness and capital expenditures; 18)
continued availability of raw materials and other commodities in adequate supplies and the effect of increased costs for such items;
19) the effects of currency exchange rates and foreign competition on future operations; 20) changes in laws and regulations, taxes,
interest rates, inflation rates and general business conditions; 21) future repurchases and/or issuances of common stock; and 22)
other risks and uncertainties set forth in the company's annual, quarterly and current reports, and proxy statements. Any forward-
looking information provided in this presentation should be considered with these factors in mind. The company assumes no
obligation to update any forward-looking statements contained in this presentation.

Contact:
Eric B. Remington, Vice President
(860) 243-6334
Eric.Remington@kaman.com