KAYDON (NYSE:KDN)

James O’Leary, Chairman and Chief Executive Officer commented, “Our results this quarter were outstanding as sales increased over both the prior year’s second quarter and this year’s first quarter. Net income rose to $17.8 million in the second quarter of 2010 compared to the $8.4 million earned in the second quarter of 2009. Our performance reflects continued improvement in our principal end markets in 2010 as compared to the prior year’s recessionary conditions. Our performance also reflects the ongoing benefit of actions taken in the last two years to structurally improve our long term competitiveness.

“Continued improvement in the second half of 2010 remains dependent on the further strengthening of economic conditions. Notably, continued improvement in our industrial business, typically booked and shipped within ninety days, will be required to maintain favorable comparisons against the prior year as we continue to expect moderation in our wind energy and military businesses in the second half of this year.

“Our results in the first half of 2010 reflect the benefits of market leadership in sound end markets together with the impact of aggressive management of costs and spending. These actions, together with our robust free cash flow and strong balance sheet, position us well going forward regardless of the broader macroeconomic concerns arising recently.”