NYSE-listed Kadant (KAI) has marginally lowered full-year revenue expectations in anticipation of ongoing supply chain constraints and shipping delays after reporting a strong Q3.
Kadant, a supplier of material handling equipment to the mining and aggregates industries, said Q3 revenue hit a record US$200 million and net income rose 38% year-on-year to $20m. Bookings increased 71% to a record $245m.
“The strong momentum built up during the first three quarters of 2021 has led to record backlog [$299m], and we expect a solid finish to the year,” Kadant CEO Jeffrey Powell said.
“While we continue to see strong demand for our products, supply chain constraints, delays in shipments, and the timing of capital orders are moderating our outlook for the fourth quarter. As a result, we are decreasing our revenue expectation to $778-to-783m for 2021 from our previous range of $783-793m.”
Group revenue for the first nine months of 2021 totalled $568m compared with $466.6m in the same period last year.
Kadant acquired Syntron Material Handling Group, which generated more than half its revenues in the minerals/coal market, in 2019.
Kadant’s Material Handling business produced $123.8m of sales in the first three quarters this year compared with $108.8m in 2020. Its Flow Control and Industrial Processing arms delivered $210.8m ($165.3m) and $233.4m ($192.5m), respectively, of revenues to the end of Q3 this year.
The company’s share price has climbed 60% this year to its highest ever levels. Its current market value is circa-$2.56 billion.