Monday, 08 August 2011 18:55

Kadant Receives $18.1 Million in Orders for Recycling and Chemical Pulping Equipment

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Kadant Inc. (NYSE:KAI) has announced that it has received orders totaling $18.1 million from two pulp and paper producers in Chile and the U.S. for chemical pulping equipment and a recycling system. The chemical pulping equipment will be used to recover chemicals in the kraft pulping process and the stock-preparation recycling system will be used to process recycled fiber for use in paper production.

 

Kadant also announced that it has been awarded contracts to provide chemical pulping equipment and a stock-preparation system with a combined value of $17.5 million from pulp and paper producers in Russia and China. Included in this total is a $6.1 million pending order from China that was previously disclosed during the Company's second quarter earnings call on July 28, 2011. The remaining contract awards are from a pulp and paper producer in Russia, and consist of a pending order for $4.2 million and a letter of intent for a second order for $7.2 million, for which the Company expects to receive the signed contract and down payment in the current quarter. The Company has received signed contracts for the pending orders, but will not record them as orders until the down payments are received, which is expected to occur in the third quarter of 2011. The timing and receipt of the down payments and the expected order are subject to a number of uncertainties, and there can be no assurance the Company will be able to record and recognize revenue on these pending or expected orders.

 

"Our selection for these large projects from Russia, China, Chile, and the U.S. demonstrate our strong position in markets around the world as well as highlight the value of Kadant's application expertise in pulping and fiber processing," said Jonathan W. Painter, president and chief executive officer of Kadant. "We were pleased to have been recognized for our product innovation, equipment reliability, and energy efficient offerings as our customers continue to seek solutions to improve energy utilization, fiber yield, and productivity. As noted during our recent earnings call, we expect to report a solid bookings performance in the third quarter of 2011."

 

SOURCE: Kadant Inc.

Additional Info

About Kadant

Kadant is a leading supplier to the global pulp and paper industry. Our stock-preparation, fluid-handling, doctoring, and water-management equipment and systems are designed to increase efficiency and improve quality in pulp and paper production. Many of our products, particularly in our fluid-handling product line, are also used to optimize production in other process industries. In addition, we produce granules from papermaking byproducts for agricultural and lawn and garden applications. Kadant is based in Westford, Massachusetts, with revenues of $270 million in 2010 and 1,600 employees in 16 countries worldwide. For more information, visit www.kadant.com.

Kadant Inc.
Investor contact:
Thomas M. O'Brien, 978-776-2000
or
Media contact:
Wes Martz, 269-278-1715
Read 2332 times Last modified on Tuesday, 09 August 2011 22:17