Jul 30, 2012. /Lesprom Network/. Kadant Inc. reported revenues from continuing operations of $83 million in the 2Q 2012, an increase of $0.5 million compared with $82.5 million in the 2Q 2011. Revenues for the 2Q 2012 included a $3.5 million decrease from foreign currency translation and a $2.4 million increase from Kadant M-Clean compared to the 2Q 2011, as the company said in the press release received by Lesprom Network. Operating income from continuing operations was $9.4 million in the 2Q 2012 compared to $10.5 million in the 2Q 2011. Net income was $6.5 million in the 2Q 2012, or $0.56 per diluted share, compared to $7.3 million, or $0.59 per diluted share, in the 2Q 2011. “We were very pleased with our results in the second quarter of 2012,” said Jonathan W. Painter, President and CEO of Kadant. “Diluted EPS from continuing operations was $0.56, one of the best performances in our twenty-year history as a public company, and exceeded our guidance, which was $0.50 to $0.52. “Revenues of $83 million were at the low end of our guidance, which was $83 to $85 million, and included an unfavorable foreign exchange translation effect of $3.5 million. Revenues also included a $2.4 million increase from Kadant M-Clean, which was acquired late in the second quarter of 2011 and included only one month’s results in that period. We were encouraged that our product gross margins were a solid 43.7%, although down from the near record level of 45.7% in the 2Q 2011. Our EBITDA was $11.4 million in the 2Q 2012, down from $12.5 million in the 2Q 2011, and represented 13.8% of revenues. Operating cash flows from continuing operations were $8.6 million, up from $6.8 million in last year’s 2Q, and we repurchased $7.3 million of our common stock in the quarter. Cash less debt was $30.1 million at the end of the quarter. “Looking forward, the continuing weak economic conditions in Europe and China, coupled with our recent bookings results and the adverse translation effect associated with the strengthening U.S. dollar, have led us to reduce guidance for the second half of the year,” Jonathan W. Painter continued. “We expect to achieve diluted EPS of $0.49 to $0.51 in the 3Q 2012 on revenues of $80 to $82 million. For the full year, we expect to achieve diluted EPS of $2.05 to $2.10 on revenues of $325 to $330 million, revised from our previous guidance of $2.10 to $2.20 on revenues of $335 to $345 million. I should note that if we achieve the revised EPS guidance for the full year, it will be the second highest result we have ever attained.” Kadant Inc. is a leading supplier to the global pulp and paper industry.