<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
--------------------
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For Quarter Ended April 3, 1999 Commission File No. 0-12640
- ------------------------------- ---------------------------
KAYDON CORPORATION
A Delaware Corporation IRS Employer ID No. 13-3186040
---------------------- ------------------------------
315 E. Eisenhower Pkwy., Suite 300, Ann Arbor, Michigan 48108
-------------------------------------------------------------
Phone: 734-747-7025
-------------------
Kaydon Corporation:
(1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12
months.
Yes X No
--- ---
(2) has been subject to such filing requirements for the past 90
days.
Yes X No
--- ---
Common Stock Outstanding at May 13, 1999 - 31,858,097 shares, $0.10 par value.
<PAGE> 2
KAYDON CORPORATION FORM 10-Q
FOR THE QUARTER ENDED APRIL 3, 1999
INDEX
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page No.
--------
<S> <C> <C>
Part I - Financial Information:
Consolidated Condensed Balance Sheets -
April 3, 1999 and December 31, 1998 1
Consolidated Condensed Statements of Income -
Quarters Ended April 3, 1999 and April 4, 1998 2
Consolidated Condensed Statements of Cash Flows -
Quarters Ended April 3, 1999 and April 4, 1998 3
Notes to Consolidated Condensed Financial Statements 4 - 9
Management's Discussion and Analysis of
Financial Condition and Results of Operations 10 - 12
Part II - Other Information:
Item 4. - Submission of Matters to a Vote of
Security Holders 13
Item 5. - Other Information 13
Item 6. - Exhibits and Reports on Form 8-K 14
Signatures 15
</TABLE>
<PAGE> 3
KAYDON CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 3, 1999 December 31, 1998
------------- -----------------
(Unaudited)
<S> <C> <C>
Assets:
Cash and cash equivalents $100,302,000 $ 96,203,000
Accounts receivable, net 50,321,000 48,957,000
Inventories, net 69,910,000 68,176,000
Other current assets 16,317,000 16,464,000
------------ ------------
Total current assets 236,850,000 229,800,000
Plant and equipment, net 98,127,000 99,259,000
Cost in excess of net tangible
assets of purchased businesses, net 63,489,000 64,717,000
Other assets 19,820,000 20,032,000
------------ ------------
Total assets $418,286,000 $413,808,000
============ ============
Liabilities and Shareholders' Equity:
Accounts payable $ 12,100,000 $ 14,853,000
Accrued expenses 51,773,000 54,312,000
Federal income tax payable 8,894,000 2,035,000
------------ ------------
Total current liabilities 72,767,000 71,200,000
Long-term liabilities 31,320,000 30,952,000
Shareholders' equity
Common stock 3,648,000 3,646,000
Paid-in capital 36,306,000 35,969,000
Retained earnings 368,141,000 355,233,000
Less - treasury stock, at cost (90,492,000) (80,711,000)
Accumulated other comprehensive loss (3,404,000) (2,481,000)
------------ ------------
314,199,000 311,656,000
------------ ------------
Total liabilities and
shareholders' equity $418,286,000 $413,808,000
============ ============
</TABLE>
See accompanying notes to consolidated condensed financial statements.
1
<PAGE> 4
KAYDON CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUARTER ENDED
April 3, 1999 April 4, 1998
------------- -------------
<S> <C> <C>
Net sales $88,120,000 $99,109,000
Gross profit 34,456,000 40,468,000
Operating income 24,748,000 28,260,000
Net interest income 1,050,000 1,249,000
----------- -----------
Income before income taxes 25,798,000 29,509,000
Provision for income taxes 9,674,000 11,214,000
----------- -----------
Net income $16,124,000 $18,295,000
=========== ===========
Weighted average common shares outstanding:
Basic 32,001,000 33,006,000
=========== ===========
Diluted 32,209,000 33,265,000
=========== ===========
Earnings per share:
Basic $0.50 $0.55
===== =====
Diluted $0.50 $0.55
===== =====
</TABLE>
See accompanying notes to consolidated condensed financial statements.
2
<PAGE> 5
KAYDON CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUARTER ENDED
-------------
April 3, 1999 April 4, 1998
------------- -------------
<S> <C> <C>
Cash flows from operating activities $ 19,343,000 $ 18,944,000
------------ ------------
Cash flows from investing activities:
Purchases of marketable securities 0 (19,920,000)
Capital expenditures, net (2,571,000) (10,867,000)
Other 0 11,000
------------ ------------
Cash used in investing activities (2,571,000) (30,776,000)
------------ ------------
Cash flows from financing activities:
Proceeds from issuance of common stock 339,000 1,238,000
Dividends paid (3,216,000) (2,969,000)
Purchase of treasury stock (9,781,000) (2,739,000)
------------ ------------
Cash used in financing activities (12,658,000) (4,470,000)
------------ ------------
Effect of exchange rate changes on cash
and cash equivalents (15,000) 792,000
------------ ------------
Net increase (decrease) in cash and cash equivalents 4,099,000 (15,510,000)
Cash and cash equivalents - Beginning of period 96,203,000 74,735,000
------------ ------------
Cash and cash equivalents - End of period $100,302,000 $ 59,225,000
============ ============
Cash expended for income taxes $ 1,600,000 $ 2,700,000
============ ============
Cash expended for interest $ 10,000 $ 10,000
============ ============
</TABLE>
See accompanying notes to consolidated condensed financial statements.
3
<PAGE> 6
KAYDON CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
(1) The consolidated condensed financial statements included herein have been
prepared by Kaydon Corporation and subsidiaries (the "Company"), without
audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in annual financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that
the disclosures made in this document are adequate to make the information
presented not misleading. It is suggested that these consolidated
condensed financial statements be read in conjunction with the
consolidated financial statements and notes thereto in the Company's 1998
Annual Report on Form 10-K.
(2) In the opinion of management, the accompanying unaudited consolidated
condensed financial statements contain all adjustments, of a normal and
recurring nature, necessary to present fairly the financial position of
the Company as of April 3, 1999 and the results of its operations and its
cash flows for the three months then ended. However, interim results are
not necessarily indicative of results of a full year.
(3) Inventories are valued at the lower of cost or market and include
material, labor and overhead. Cost is determined under the first-in,
first-out ("FIFO") method. Inventories are summarized as follows:
<TABLE>
<CAPTION>
April 3, 1999 December 31, 1998
------------- -----------------
<S> <C> <C>
Raw Material $28,061,000 $26,570,000
Work in Process 20,137,000 20,352,000
Finished Goods 21,712,000 21,254,000
----------- -----------
$69,910,000 $68,176,000
=========== ===========
</TABLE>
(4) In 1998, the Company adopted Statement of Financial Accounting Standards
No. 130, "Reporting Comprehensive Income". This statement establishes
standards for reporting and display of comprehensive income and its
components. Comprehensive income reflects the change in equity of a
business enterprise during a period from transactions and other events and
circumstances from nonowner sources. For the Company, the comprehensive
income consists of net income, minimum pension liability adjustments and
foreign currency
4
<PAGE> 7
translation adjustments. Other comprehensive income, net of tax, was
approximately ($923,000) and $974,000, resulting in comprehensive income
of $15,201,000 and $19,269,000 for the quarters ended April 3, 1999 and
April 4, 1998, respectively.
(5) The following table reconciles the numerators and denominators used in the
calculation of basic and diluted earnings per share for the quarters
presented.
<TABLE>
<CAPTION>
Quarter Ended
April 3, 1999 April 4, 1998
------------- -------------
<S> <C> <C>
Numerators:
Numerators for both basic
and diluted earnings per share,
net income $16,124,000 $18,295,000
=========== ===========
Denominators:
Denominators for basic earnings
per share, weighted average
common shares outstanding 32,001,000 33,006,000
Potential dilutive shares resulting
from stock option plans 208,000 259,000
----------- -----------
Denominators for dilutive
earnings per share 32,209,000 33,265,000
=========== ===========
Earnings per share:
Basic $.50 $.55
==== ====
Diluted $.50 $.55
==== ====
</TABLE>
Options to purchase 145,800 shares of common stock at $33.00 per share
were outstanding during the first quarter of 1999, but were not included
in the computation of diluted earnings per share because the options'
exercise price was greater than the average market price of the common
shares during that period.
All outstanding options to purchase shares of common stock were included
in first quarter 1998 diluted earnings per share computation because the
options' exercise price was less than the average market price of common
shares during that period.
5
<PAGE> 8
(6) In 1998, the Company adopted the provisions of Statement of Financial
Accounting Standards No. 131, "Disclosures about Segments of an Enterprise
and Related Information". This statement establishes new standards for
reporting information about operating segments and related disclosures.
All prior period information has been restated to conform to this
statement.
The Company operates through individual operating units which serve four
key market sectors. The market sectors served by the Company have several
related economic characteristics and attributes, including similar
products, distribution patterns and classes of customers. As a result, the
Company aggregates its operating units into a single segment of
Custom-Engineered Products.
The corporate component of income before taxes includes interest income,
goodwill amortization, depreciation and unallocated corporate
administrative expenses. The Company maintains an asymmetrical allocation
between its corporate office and its plants with regards to goodwill. The
goodwill associated with an operating unit is on the balance sheet of the
respective operating unit while the amortization expense associated with
the goodwill is charged to the corporate office.
Segment financial data (in thousands):
<TABLE>
<CAPTION>
Quarter Ended
April 3, 1999 April 4, 1998
---------------------------------------- -----------------------------------------
Custom- Custom-
Engineered Consolidated Engineered Consolidated
Products Corporate Totals Products Corporate Totals
<S> <C> <C> <C> <C> <C> <C>
Sales $89,749 $ 0 $89,749 $99,827 $ 0 $99,827
Elimination of
intercompany
sales (1,629) 0 (1,629) (718) 0 (718)
------- ---- ------- ------- ---- -------
Total net sales 88,120 0 88,120 99,109 0 99,109
Segment EBIT 25,107 0 25,107 28,583 0 28,583
Unallocated
amounts 0 691 691 0 926 926
------- ---- ------- ------- ---- -------
Income before
income taxes $25,107 $691 $25,798 $28,583 $926 $29,509
</TABLE>
There has been no change in the basis or measurement of segmentation since
the last annual report.
6
<PAGE> 9
(7) In June of 1995, the Company, along with certain former officers and
directors of the Company and certain other companies and organizations,
was named as a defendant in a lawsuit commenced in Bankruptcy Court in the
Southern District of New York. The plaintiff was the Creditors Committee
formed in connection with the Chapter 11 Bankruptcy Proceeding of Keene
Corporation ("Keene"). That action, identified as the "Transactions
Lawsuit", asserted claims against the Company arising from the Company's
1983 acquisition of certain assets of Keene, and Bairnco Corporation's
1984 spin-off of the Company's common stock. As originally filed, the
Transactions Lawsuit alleged claims against the Company under state
fraudulent conveyance laws, tort claims under successor liability law, and
civil RICO claims. The Transactions Lawsuit seeks damages alleged by
plaintiffs to be an amount of $700 million, plus interest and punitive
damages against the defendants collectively. The RICO claims sought
trebling of those damages. The claims asserted in the Transactions Lawsuit
are similar to, and supplant, claims previously asserted in certain class
actions brought against the Company in 1993, purportedly on behalf of
certain persons with asbestos-related claims against Keene.
In 1997, in connection with the Bankruptcy Court's confirmation of Keene's
Plan of Reorganization, the Keene Creditors Trust was created to, among
other things, prosecute this lawsuit, and the Trustees of that Trust were
substituted as the plaintiffs in place of the Keene Creditors Committee.
In addition, the case was transferred from the Bankruptcy Court to the
United States District Court for the Southern District of New York.
Subsequently, the Company and certain other defendants filed motions to
dismiss the complaint for failure to state a claim, and for summary
judgment on the grounds that the fraudulent conveyance claims and certain
related causes of action were barred by the statute of limitations.
On October 13, 1998, the Court granted in part and denied in part the
Company's motion to dismiss the complaint, and denied the Company's motion
for summary judgment. With respect to the motion for summary judgment, the
Court found that certain groups of asbestos claimants had claims that were
not time-barred, and therefore the plaintiffs could assert claims against
the Company for both actual fraudulent conveyance and constructive
fraudulent conveyance. With respect to the motion to dismiss, the Court
granted the Company's motion to dismiss the fraudulent conveyance claim
against it in connection with Bairnco's 1984 spin-off of the Company's
common stock, and dismissed all the RICO claims asserted against the
Company. The Court denied the Company's motion to dismiss the successor
liability claim, but noted the plaintiffs' ability to pursue such a claim
was subject to their ability to pursue a fraudulent conveyance claim.
7
<PAGE> 10
On October 29, 1998, the Company filed a motion for reargument of the
Court's ruling that the plaintiffs' claims for actual and constructive
fraudulent conveyance against the Company are not barred by the applicable
statute of limitations. On January 5, 1999, the Court issued a decision on
the Company's motion for reargument, which granted the Company's motion
for reargument with regard to the plaintiffs' claims for constructive
fraudulent conveyance, and, with one minor exception, held those claims
were barred by the applicable statute of limitations and dismissed them.
However, the Court denied the Company's motion to dismiss the actual
fraudulent conveyance claims. Accordingly, as a result of the Company's
motions, the only claims remaining against the Company are plaintiffs'
claims for actual fraudulent conveyance and for successor liability. In
addition, there is on behalf of certain individual judgment creditors, a
limited claim for constructive fraudulent conveyance. The Company does not
believe any recovery on this limited claim will be material. The discovery
stay previously in place has been lifted, and discovery is in its
preliminary stages.
In other decisions, the Court also dismissed the claims against all the
individual defendants except one, and against the professional
organizations that had been named as defendants in the case. However,
Bairnco and its other subsidiaries and former subsidiaries remain as
defendants in the case.
Management believes it has meritorious defenses to the claims pending
against it in this litigation. Accordingly, no provision has been
reflected in the consolidated financial statements for any alleged
damages. Management further believes that the outcome of this litigation
will not have a material adverse effect on the Company's financial
position.
In June 1996, the Company received a subpoena issued by the U.S. District
Court in Bridgeport, Connecticut on behalf of a grand jury investigating a
May 9, 1996 accident involving a Sikorsky helicopter (CH-53E) in which
four persons died. The grand jury requested and received documents and
records relating to bearings manufactured by Kaydon and used in the
Sikorsky helicopter. In addition, a "Mishap Board" led by Sikorsky
Aircraft Corporation alleged that product quality problems or deficiencies
existed with respect to the Kaydon bearing used in the Sikorsky helicopter
described above. Kaydon was excluded from participation on this "Mishap
Board". However, it has independently evaluated the available evidence and
refuted the "Mishap Board" findings in reports submitted to the Navy.
Subsequent incidents have occurred in the helicopter fleet even though the
bearings used were newly manufactured, inspected and approved by Sikorsky
and Navy personnel, reinforcing the Company's position that the bearing
quality was not the causative action in the May 9, 1996 accident. During
the first half of 1997, the estates of the four deceased individuals filed
civil suits against the Company. On July 6, 1998, Sikorsky filed a claim
against the Company in those same civil cases claiming
8
<PAGE> 11
damages which they are alleged to have incurred following the May 9, 1996
accident. In October 1998, Kaydon reached settlement agreements with the
estates of each plaintiff in the four civil suits. All settlement amounts
were fully covered under Company insurance. In September 1998, Kaydon
received the Judge Advocate General's Report (the "JAG Report") and the
Naval Air Systems Command "First Endorsement" to the JAG Report dated July
28, 1998 wherein the U.S. Navy reviewed the crash of the Sikorsky CH-53E
on May 9, 1996. The findings contained in the JAG Report, management
believes, reaffirm the position that the bearing was not the causative
action in the May 9, 1996 accident. Management believes it has meritorious
defenses against any claims. Management further believes the outcome of
this matter will not have a material adverse effect on the Company's
financial position or results of operations.
Various other claims, lawsuits and environmental matters arising in the
normal course of business are pending against the Company. Management
believes that the outcome of these matters will not have a material
adverse effect on the Company's financial position or results of
operations.
9
<PAGE> 12
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- -------------------------------------------------------------------------------
Results of Operations
During the first quarter of 1999, Kaydon Corporation and subsidiaries (the
"Company") achieved sales of $88,120,000, down 11.1 percent from $99,109,000 in
the first quarter of 1998. The Company was negatively impacted by lower sales
levels to construction equipment and aerospace markets, as well as lower sales
levels of specialty bearing products in the United Kingdom. First quarter 1999
sales generally reflected modest demand in key markets as well as the impact of
continuing, but moderating, excess inventory levels at key customers,
especially in distribution channels. As a result of the lower sales volume,
gross profit during the 1999 first quarter of $34,456,000 was 39.1 percent of
sales, compared with $40,468,000 or 40.8 percent of sales in the 1998 first
quarter.
Selling and administrative expenses were $9,708,000 or 11.0 percent of sales
during the 1999 first quarter, down $2,500,000 from $12,208,000 or 12.3 percent
of sales during last year's comparable quarter. The decrease is attributed to
management's emphasis on spending controls during this period of lower sales.
Net interest income of $1,050,000 was down $199,000 from $1,249,000 last year
on lower average cash balances and lower prevailing investment rates by 50 to
70 basis points.
First quarter 1999 net income was $16,124,000, or 18.3 percent of sales.
Earnings per share on a diluted basis equaled $.50. First quarter 1998 net
income and diluted earnings per share were $18,295,000 and $.55.
The effective tax rate during the 1999 first quarter was 37.5 percent compared
to 38.0 percent in the first quarter 1998. The lower rate is due to a
combination of lower foreign rates and higher export sales.
Liquidity and Capital Resources
Working capital was $164,083,000 at the end of the first quarter reflecting a
current ratio of 3.3 compared to $158,600,000 and a current ratio of 3.2 at
year-end 1998. Cash flow from operations was a record $19,343,000 during the
first quarter up from $18,944,000 for the same period in 1998, reflecting
better control of working capital during this period of lower sales.
10
<PAGE> 13
Depreciation and amortization totaled $4,125,000 compared to $3,698,000 in the
first quarter 1998.
Cash and cash equivalents equaled $100,302,000 at the end of the first quarter,
up $4,099,000 over the balance at year-end 1998 of $96,203,000. This increase
reflects strong operating cash flow offset by capital expenditures of
$2,571,000 and the repurchase of 317,223 shares of common stock for $9,781,000.
Management expects that the Company's planned capital requirements for the
remainder of 1999, which consists of capital expenditures, dividend payments
and its stock repurchase program will be financed by operations. The Company
expects to have a new $300,000,000 credit facility in place before the end of
the second quarter. The Company is currently debt free.
Year 2000
This year 2000 readiness disclosure is the most current information available
and replaces all previous disclosures made by the Company in its filings on
Form 10-Q and Form 10-K, and in its Annual Report to shareholders.
The Company has a plan in place to manage the readiness of its systems with
respect to the requirements for transaction processing in the year 2000. The
proprietary Company internal system was modified to be year 2000 compliant in
1997. Review and testing of the modifications was completed during 1998. The
costs for these modifications were expensed as routine internal programming
costs during the period incurred and were not material. Any additional expenses
will also be expensed as incurred and are not expected to be material.
As part of the Company's long-term objectives for continued operational
improvements and cost management, investments are planned in information
technology. The cost of these investments are estimated at $2.5 to $3.0 million
over the next 18 months. As part of any investment in information systems, year
2000 compliance will be assured. The incremental costs associated with year
2000 modifications related to these investments, if any, will be expensed as
incurred and are not expected to be material.
Embedded technology in facilities systems, machinery and equipment is currently
being inventoried and assessed. No significant year 2000 compliance issues are
anticipated and completion of all remediation is expected to be completed by
December 31, 1999.
A component of the Company's year 2000 readiness plan is to address any
remaining open issues anticipated in 1999 and early 2000. As a precautionary
measure, the Company will be developing contingency plans for systems not
expected to be year 2000 compliant. A variety of automated as well as manual
fallback plans are under consideration.
11
<PAGE> 14
The Company is also working with its customers, vendors and suppliers to assess
the year 2000 readiness of their systems. It is anticipated this activity will
be completed by December 31, 1999. Any costs for remediation of third party
system issues are expected to be borne by those third parties.
At this time, the Company would characterize as "worst case" any scenario that
involves potential disruptions in which the Company's operations may rely on
such third parties whose systems may not work properly after December 31, 1999.
Possible consequences of year 2000 interruptions include, but are not limited
to, a temporary inability to manufacture or ship product; process transactions;
communicate with customers, suppliers, subsidiary locations and employees; or
conduct other similar corporate activities in a normal business environment.
While such failures could affect the Company either directly or indirectly, the
Company cannot at the present time estimate either the likelihood or the
potential cost of such failures.
Outlook
The Company's backlog at the end of first quarter was $137,390,000 compared to
$145,311,000 at the end of 1998. Based upon current business indications,
including quoting activity and future business forecasts for Kaydon customers'
end-markets, we believe that order entry should increase during 1999's second
half. The new credit facility, together with the Company's current cash
reserves, will provide substantial resources to fund our ongoing business
development efforts.
Certain information in this Form 10-Q is forward looking, such as the Company's
expectations regarding future financial performance and the expansion of the
Company credit facility. The Company may not update these expectations to
reflect subsequent events. Such forward-looking information involves risks and
uncertainties that could significantly affect expected results. These risks and
uncertainties include, but are not limited to, uncertainties to economic
conditions, market acceptance of new enhanced versions of the Company's
products, the pricing of raw materials and changes in the competitive
environments in which the Company's businesses operate. Readers are cautioned
to consider these factors when relying on such forward-looking information.
12
<PAGE> 15
Part II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The fifteenth Annual Shareholders' Meeting of Kaydon Corporation was
held at the Tampa Airport Marriott on April 30, 1999. Represented at
this meeting in person or by proxy were 27,915,437 shares of Kaydon
common stock, representing 87.3 percent of the total outstanding as of
the February 26, 1999 record date.
1. The shareholders elected Gerald J. Breen, Brian P. Campbell,
Lawrence J. Cawley, Thomas C. Sullivan and B. Joseph White to
serve as Directors until the 2000 Annual Meeting. The results of
the votes were as follows:
<TABLE>
<CAPTION>
For Withhold
---------- --------
<S> <C> <C>
G. Breen 27,877,264 38,173
B. Campbell 27,874,656 40,781
L. Cawley 27,873,419 42,018
T. Sullivan 27,856,671 58,766
B. J. White 27,330,092 585,345
</TABLE>
2. The result of the vote to approve the Kaydon Corporation 1999 Long
Term Stock Incentive Plan was as follows:
<TABLE>
<CAPTION>
For Against Abstain Broker Non-Votes
--- ------- ------- ----------------
<S> <C> <C> <C>
12,314,172 10,895,260 800,345 3,905,660
</TABLE>
There was no other official business to come before the meeting.
Item 5. Other Information
Effective April 30, 1999, Mr. Brian P. Campbell was elected Chairman
of the Board, succeeding Lawrence J. Cawley who retired from active
management. Mr. Campbell will also continue to hold the positions of
President and Chief Executive Officer.
13
<PAGE> 16
Item 6. Exhibits and Reports on Form 8-K
A. Exhibit No. Description
(27) Financial Data Schedule (for SEC use only)
B. Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
April 3, 1999.
14
<PAGE> 17
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 thereunto duly authorized.
KAYDON CORPORATION
May 17, 1999 /s/ Brian P. Campbell
------------------------------------
Brian P. Campbell
(Chairman, President & Chief
Executive Officer)
May 17, 1999 /s/ Kenneth W. Crawford
------------------------------------
Kenneth W. Crawford
(Vice President & Corporate
Controller)
15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> APR-03-1999
<CASH> 100,302
<SECURITIES> 0
<RECEIVABLES> 52,296
<ALLOWANCES> 1,975
<INVENTORY> 69,910
<CURRENT-ASSETS> 236,850
<PP&E> 224,581
<DEPRECIATION> 126,454
<TOTAL-ASSETS> 418,286
<CURRENT-LIABILITIES> 72,767
<BONDS> 0
0
0
<COMMON> 3,648
<OTHER-SE> 310,551
<TOTAL-LIABILITY-AND-EQUITY> 418,286
<SALES> 88,120
<TOTAL-REVENUES> 88,120
<CGS> 53,664
<TOTAL-COSTS> 53,664
<OTHER-EXPENSES> 9,708
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,050)
<INCOME-PRETAX> 25,798
<INCOME-TAX> 9,674
<INCOME-CONTINUING> 16,124
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,124
<EPS-PRIMARY> .50
<EPS-DILUTED> .50
</TABLE>
