Kaman Corporation announced the next phase in its portfolio reshaping efforts to optimize its cost structure, focus resources on the most compelling growth opportunities, improve financial performance and position Kaman to deliver sustainable shareholder value. In total, including the previously announced anticipated savings related to the Joint Programmable Fuze (“JPF”) program consolidation. In connection with these and other restructuring actions, Kaman expects to incur approximately $10 million to $12 million in total pre-tax restructuring charges associated with headcount reduction and personnel initiatives and at least $54 million of non-cash charges related to the write-down of existing aircraft, contract costs, excess spare parts and equipment inventories
Ian K. Walsh, Chairman, President, and Chief Executive Officer said, “In December, we announced plans to consolidate our Joint Programmable Fuze production and optimize our cost structure to ensure alignment with the highest growth opportunities. With respect to workforce reductions, we do not take these decisions lightly. We value the tremendous contributions of our colleagues who worked to position Kaman for its next chapter of growth and success and are committed to supporting them through this transition. We remain focused on advancing our strategic priorities to maximize Kaman’s performance for the benefit of our customers and shareholders.”
Over the past 30 years, Kaman has designed and produced 60 K-MAX® helicopters with unmatched precision and efficiency for industries such as firefighting, construction and emergency response. However, the Company determined that given low demand and variation in annual deliveries, coupled with low profitability and large working capital inventory requirements, K-MAX® does not deliver the most compelling growth opportunity for Kaman going forward. As such, Kaman will discontinue K-MAX® and K-MAX TITAN production this year. Kaman will continue to support the existing K-MAX® fleet in operation, including providing operators with repair, spare parts, and fleet services as well as training.
Kaman Corporation is an American aerospace company, with headquarters in Bloomfield, Connecticut. It was founded in 1945 by Charles Kaman and headquartered in Bloomfield, Connecticut, conducts business in the aerospace & defense, industrial and medical markets. Kaman produces and markets proprietary aircraft bearings and components; super precision, miniature ball bearings; proprietary spring energized seals, springs and contacts; wheels, brakes and related hydraulic components for commercial, military and general aviation fixed and rotary wing aircraft. It also conducts subcontractor helicopter work and supports the Company’s existing fleet of K-MAX® and SH-2G Super Seasprite maritime helicopters.