Kadant calls material handling a bright spot

Westford, Massachusetts-based Kadant Inc. has reported increased revenue and income figures for the third quarter of 2023 and points to its material handling business unit as a bright spot. That business segment of Kadant includes Balemaster of Crown Point, Indiana, and Paal of Germany, both of which make balers for the recycling market.

“While we have seen a general slowdown in manufacturing activity in most regions of the world, all of our operating segments achieved solid revenue performance and margin expansion,” says Jeffrey L. Powell, president and CEO of Kadant.

“Growth in our material handling segment was particularly notable, as we benefited from strong demand for both aftermarket parts and capital equipment, leading to excellent financial results in the third quarter.”

In its most recently completed quarter, Kadant's revenue rose to $244.2 million, a 9 percent increase compared with $224.5 million in the third quarter of last year.

At about $59.1 million in the third quarter of 2023, Kadant’s material handling revenue was below that of its flow control and industrial process sectors. However the nearly $8 million dollar, 9 percent year-on-year increase made it the standout performer.

The company’s overall third quarter 2023 net income rose by 12 percent year on year, to $31 million, compared with about $27.7 million in the second quarter of 2022.

“While industrial demand continues to moderate in response to a variety of macroeconomic challenges, we remain well positioned to finish the year strong and deliver record financial performance again in 2023," Powell says.

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Although the company says the value of its new bookings decreased by 1 percent year on year in the third quarter, Kadant also indicates it ended the third quarter of 2023 with a $324 million order backlog.