The friction control segment represents over half of Kaydon’s total sales, which were $462.4 million in the most recently reported twelve months. Kaydon has been consistently profitable over the years, but took a non-cash charge of $46.3 million in 2012 to write-down the value of its wind energy production equipment. The impairment charge was triggered by a restructuring of the company’s wind energy business line. The restructure was needed to bring the business in line with the reduced pace of growth in the wind segment.
SKF Group is a worldwide supplier of bearings that has built a network of over 15,000 distribution centers for its bearing products as well as maintenance and engineering services. Tucked into SKF, Kaydon will probably lose its alternative energy character. Just the same, the suppliers behind the scenes remain a smart way to play the transforming energy sector.