Oct 30, 2012. /Lesprom Network/. Kadant Inc. reported revenues from continuing operations of $86.6 million in the 3Q 2012, an increase of $2.2 million compared with $84.4 million in the 3Q 2011. Revenues in the 3Q 2012 included a $3.6 million decrease from foreign currency translation. Operating income from continuing operations was $9.9 million in the 3Q 2012 compared to $10.8 million in the 3Q 2011. Operating income in the 3Q 2011 included income of $2.3 million related to a gain from the sale of assets, as the company said in the press release received by Lesprom Network. 3Q net income was $8.5 million, or $0.74 per diluted share, compared to $8.6 million, or $0.70 per diluted share, in the 3Q 2011. Income from discontinued operation in the 3Q 2012 was $0.9 million, or $0.08 per diluted share, compared to a loss in the 3Q 2011of $1.2 million, or $0.10 per diluted share, both due to adjustments to the estimated liability associated with the composites’ class action settlement. Adjusted net income, a non-GAAP measure, in the 3Q 2012 was $7.6 million, or $0.66 per diluted share, compared to $5.7 million, or $0.47 per diluted share, in the 3Q 2011. “We had another excellent quarter and are on pace to achieve record adjusted diluted EPS for the full year 2012,” said Jonathan W. Painter, president and CEO of Kadant. “GAAP diluted EPS from continuing operations was $0.66 and well above our guidance of $0.49 to $0.51 due to higher revenues and a lower effective tax rate. We set a new record for the highest quarterly adjusted diluted EPS result achieved in our twenty-year history as a public company. “Revenues of $86.6 million also exceeded our guidance, which was $80 to $82 million, and included an unfavorable foreign currency translation effect of $3.6 million. The increase in 3Q revenue was largely in our doctoring, cleaning, and filtration product line, which was up 10% compared to the 3Q 2011. “Overall, our operating performance in the 3Q was excellent. Our gross margins remained solid at 43.4%, operating income was $9.9 million, and adjusted EBITDA, a non-GAAP measure, was $12.1 million. If we had an area of disappointment, it was our bookings, which were impacted by global economic uncertainty, particularly in Europe. “Consolidated bookings were $69.3 million in the 3Q 2012, down 27% from last year’s 3Q due to lower capital bookings. Although the uncertain macroeconomic environment certainly impacted our third quarter bookings, we believe the timing of capital orders also played a role. For example, we have several projects in the pipeline, which we believe will be booked as orders in the 4Q.” Kadant Inc. is a leading supplier to the global pulp and paper industry.