Brush Engineered Materials Plunges On Outlook Cut

HARTFORD, Conn. (AP) — Shares of Brush Engineered Materials Inc. plunged Wednesday, a day after the supplier of materials for electronics manufacturing cut its first-quarter revenue outlook citing the deteriorating economy.

The stock fell $1.34, or 9.7 percent, to $12.53 in morning trading. It has ranged from $6.98 to $34.63 over the past year.

The Mayfield Heights, Ohio-based company now expects to report quarterly revenue between $127 million and $137 million, down from a previous forecast of $145 million to $165 million.

On average, analysts polled by Thomson Reuters expect revenue of $148.9 million.

Brush Engineered also said it could post earnings up to 40 cents per share for the full year assuming an economic recovery. Analysts predict 2009 income of 35 cents per share.

The company warned that demand, changes in metal prices, inventory levels, and other factors could have a significant effect on results.

Analyst Mark L. Parr KeyBanc Capital Markets cut his 2009 earnings estimate to 25 cents per share from 35 cents per share. He also reduced his first-quarter estimate to a loss of 25 cents per share from a previous forecast for a loss of 14 cents per share.

Parr cited weaker-than-expected demand in the first quarter, inventory writedowns and more cost-cutting.

Parr said the company's guidance suggests its profitability could hit bottom in the first quarter and "assumes a back-end-loaded earnings scenario" as restocking occurs in the second half of the year and price and cost issues retreat.