ANNUAL2003 REPORT KAMAN Kaman Strategies In Action Since shortly after its founding in 1945, STRATEGIES Kaman has embraced diversification as a means Bloomfield, Connecticut 06002 (860) 243-7100 of balancing business risks and returns. www.kaman.com Diversification, along with moderate use of debt IN ACTION and a conservative business philosophy, have helped ensure the flexibility to pursue market- building strategies when near-term economic conditions are favorable as well as unfavorable. The company reports in three segments: Aerospace, representing 28% of 2003 sales, Industrial Distribution, 56%, and Music, 16%. 2003 ANNUAL REPORT ANNUAL2003 REPORT KAMAN Kaman Strategies In Action Since shortly after its founding in 1945, STRATEGIES Kaman has embraced diversification as a means Bloomfield, Connecticut 06002 (860) 243-7100 of balancing business risks and returns. www.kaman.com Diversification, along with moderate use of debt IN ACTION and a conservative business philosophy, have helped ensure the flexibility to pursue market- building strategies when near-term economic conditions are favorable as well as unfavorable. The company reports in three segments: Aerospace, representing 28% of 2003 sales, Industrial Distribution, 56%, and Music, 16%. 2003 ANNUAL REPORT INVESTOR INFORMATION KAMAN CORPORATION AND SUBSIDIARIES DIVIDEND REINVESTMENT PROGRAM QUARTERLY CLASS A COMMON STOCK INFORMATION A Dividend Reinvestment Program is available 2003 HIGH LOW CLOSE DIVIDEND for investment in Class A common stock. A booklet First $13.24 $ 9.40 $ 9.78 11¢ describing the program may be obtained from the Second 11.80 9.42 11.49 11¢ transfer agent. Third 14.91 10.72 12.96 11¢ ANNUAL MEETING Fourth 14.29 11.67 12.73 11¢ The Annual Meeting of Shareholders is scheduled to be held on Tuesday, April 20, 2004, at 11:00 a.m. at 2002 HIGH LOW CLOSE DIVIDEND the offices of the corporation, 1332 Blue Hills Avenue, First $17.61 $13.46 $16.95 11¢ 06002 Bloomfield, CT . Holders of all classes of Kaman Second 18.81 14.82 16.76 11¢ securities are invited to attend; however, it is expected Third 17.50 11.00 12.25 11¢ that matters on the agenda for the meeting will require 13.75 9.42 11.00 11¢ Kaman the vote of Class B shareholders only. Fourth Kaman Corporation Class A Common shares are traded INVESTOR INFORMATION DIRECTORY on the Nasdaq Stock Market under the symbol “KAMNA.” investor, media and public relations contact information for shareholders Kaman provides products and services through three Russell H. Jones In addition to this Annual Report, shareholders Senior Vice President, may obtain the Form 10-K, filed annually with business segments: Chief Investment Officer and Treasurer the Securities and Exchange Commission in March, Telephone: (860) 243-6307 and other SEC reports via the Internet or from E-mail: [email protected] the Investor Contact. AEROSPACE INDUSTRIAL DISTRIBUTION MUSIC FINANCIAL HIGHLIGHTS mailing address: kaman’s web site Kaman produces aircraft structures Kaman is one of the nation’s larger Kaman is the largest independent In thousands except per share amounts 2003 2002 Kaman Corporation Visit Kaman’s Home Page on the Internet, and components for commercial distributors of power transmission, distributor of musical instruments net sales $ 894,499 $ 880,776 1332 Blue Hills Avenue http://www.kaman.com, to access a corporate 1 and military aircraft, including motion control, material handling and accessories, offering more than net earnings (loss) 19,405 (33,601) P.O. Box overview, investor information, and our 06002 specialized aircraft bearings, pro- and electrical components and a 15,000 products for amateurs and total assets 528,311 535,540 Bloomfield, Connecticut media center. vides various advanced technology wide range of bearings. Products professionals. Proprietary products per share amounts: Public Securities Information counsel Finlay Printing : Listing: Nasdaq products for critical specialized and value-added services are offered include Ovation®,Takamine®, and Net earnings (loss) per share Symbol: Murtha Cullina LLP Hamer® guitars; and Latin Percus- $ .86 $ (1.50) applications including missile and to a customer base of more than Basic Class A Common: KAMNA CityPlace 50,000 printing 06103 bomb fuzing, and manufactures and companies representing a sion® and Toca® hand percussion Diluted .86 (1.50) Hartford, Connecticut 2 transfer agent supports the SH- G Super Seasprite highly diversified cross-section of instruments, Gibraltar® percussion Dividends declared .44 .44 independent auditors naval helicopter and the K-MAX North American industry. hardware and Gretsch® professional 13.40 13.00 Mellon Investor Services Shareholders’ equity 590 KPMG LLP Lanny Nagler Lanny P.O. Box medium-to-heavy lift helicopter. highlights drum sets. : Ridgefield Park, NJ 07660 One Financial Plaza highlights highlights (800) 227-0291 Hartford, Connecticut 06103 Acquired ISI of Telephone: Officially opened the newly Birmingham, Alabama. Completed the first full year of CORPORATE HIGHLIGHTS www.melloninvestor.com expanded Jacksonville aircraft Latin Percussion operations follow- Continued to implement strategies for each segment despite difficult market conditions. Opened or relocated branches to manufacturing plant. ing acquisition in October 2002. serve major markets in Virginia, Completed two acquisitions and divested a non-core business. photography principal Completed phase-out of the Oklahoma and Texas. Successfully consolidated Latin Held use of debt to moderate levels, consistent with conservative policy. Moosup, Connecticut plant. Percussion’s warehouse and Continued to expand the base operations into Kaman facilities. Completed 33 consecutive years of dividend payments to shareholders. Kamatics, in cooperation with of national accounts. the company’s German subsidiary, Acquired Genz Benz, an amplifier Expanded the product offering with RWG, increased its presence at company, in September 2003. new fluid power and motion control Airbus Industrie, particularly lines and other MRO products. Achieved significant increase City DeSantis Breindel / New York for the A380 program. : in customer utilization of its K-MAX, Gibraltar, Hamer, Latin Percussion, Ovation, Takamine and Toca are registered trademarks of Kaman Corporation. Gretsch and Sabian are registered trademarks of others. Divested the non-core enhanced e-commerce capabilities. design This annual report is printed in part on recycled paper. electromagnetics business. INVESTOR INFORMATION KAMAN CORPORATION AND SUBSIDIARIES DIVIDEND REINVESTMENT PROGRAM QUARTERLY CLASS A COMMON STOCK INFORMATION A Dividend Reinvestment Program is available 2003 HIGH LOW CLOSE DIVIDEND for investment in Class A common stock. A booklet First $13.24 $ 9.40 $ 9.78 11¢ describing the program may be obtained from the Second 11.80 9.42 11.49 11¢ transfer agent. Third 14.91 10.72 12.96 11¢ ANNUAL MEETING Fourth 14.29 11.67 12.73 11¢ The Annual Meeting of Shareholders is scheduled to be held on Tuesday, April 20, 2004, at 11:00 a.m. at 2002 HIGH LOW CLOSE DIVIDEND the offices of the corporation, 1332 Blue Hills Avenue, First $17.61 $13.46 $16.95 11¢ 06002 Bloomfield, CT . Holders of all classes of Kaman Second 18.81 14.82 16.76 11¢ securities are invited to attend; however, it is expected Third 17.50 11.00 12.25 11¢ that matters on the agenda for the meeting will require 13.75 9.42 11.00 11¢ Kaman the vote of Class B shareholders only. Fourth Kaman Corporation Class A Common shares are traded INVESTOR INFORMATION DIRECTORY on the Nasdaq Stock Market under the symbol “KAMNA.” investor, media and public relations contact information for shareholders Kaman provides products and services through three Russell H. Jones In addition to this Annual Report, shareholders Senior Vice President, may obtain the Form 10-K, filed annually with business segments: Chief Investment Officer and Treasurer the Securities and Exchange Commission in March, Telephone: (860) 243-6307 and other SEC reports via the Internet or from E-mail: [email protected] the Investor Contact. AEROSPACE INDUSTRIAL DISTRIBUTION MUSIC FINANCIAL HIGHLIGHTS mailing address: kaman’s web site Kaman produces aircraft structures Kaman is one of the nation’s larger Kaman is the largest independent In thousands except per share amounts 2003 2002 Kaman Corporation Visit Kaman’s Home Page on the Internet, and components for commercial distributors of power transmission, distributor of musical instruments net sales $ 894,499 $ 880,776 1332 Blue Hills Avenue http://www.kaman.com, to access a corporate 1 and military aircraft, including motion control, material handling and accessories, offering more than net earnings (loss) 19,405 (33,601) P.O. Box overview, investor information, and our 06002 specialized aircraft bearings, pro- and electrical components and a 15,000 products for amateurs and total assets 528,311 535,540 Bloomfield, Connecticut media center. vides various advanced technology wide range of bearings. Products professionals. Proprietary products per share amounts: Public Securities Information counsel Finlay Printing : Listing: Nasdaq products for critical specialized and value-added services are offered include Ovation®,Takamine®, and Net earnings (loss) per share Symbol: Murtha Cullina LLP Hamer® guitars; and Latin Percus- $ .86 $ (1.50) applications including missile and to a customer base of more than Basic Class A Common: KAMNA CityPlace 50,000 printing 06103 bomb fuzing, and manufactures and companies representing a sion® and Toca® hand percussion Diluted .86 (1.50)