UPDATE 1-Kaydon Q1 profit falls 34 pct

* Q1 EPS $0.30 vs $0.52 year ago

* Revenue falls 11 pct

May 1 (Reuters) - Kaydon Corp (KDN.N), which makes specialty ball bearings for wind turbines, reported a 34 percent decline in quarterly profit, hurt mainly by lower volumes, stronger U.S. dollar and higher pension costs. For the first quarter, net income fell to $10.1 million, or 30 cents a share, from $15.3 million, or 52 cents a share, a year earlier. Revenue fell 11 percent to $110.3 million.

Analysts on average were expecting earnings of 27 cents a share, before special items, on revenue of $106.1 million, according to Reuters Estimates.

Businesses serving international markets, mainly Europe, experienced declines similar to a drop experienced in its North American end markets in the later half of 2008, the company said.

End markets, such as wind energy, defense and medical, grew but at lower-than-expected rates due to the effects of the global financial crises, Chief Executive James O'Leary said in a statement.

Tight credit conditions impacted ultimate end users' ability to finance new projects in the wind energy market, resulting in deferrals or near-term cancellation of certain projects previously planned for 2009, the CEO said.

Shares of the company closed at $31.96 Thursday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Ratul Ray Chaudhuri)