Ceradyne Cuts 2009 Outlook By More Than Half

COSTA MESA, Calif. (AP) — Ceramics products manufacturer Ceradyne Inc. on Tuesday reduced its 2009 earnings guidance by more than half on expectations of lower armor shipments and further weakened demand for industrial ceramics.

Ceradyne said it expects to earn 70 cents per share in 2009, far below previous guidance of about $1.60 per share.

Analysts polled by Thomson Reuters, on average, forecast income of $1.48 per share.

Costa Mesa, Calif.-based Ceradyne expects 2009 sales in the range of $420 million to $440 million, a drop from its earlier guidance of $465 million to $500 million. Analysts predict $461.9 million in sales.

Ceradyne said its revised guidance does not include estimated pretax charges of $11 million to $13 million to close its Bazet, France, manufacturing plant or the impact of the acquisitions of Diaphorm Technologies LLC.

Joel P. Moskowitz, Ceradyne's chairman, chief executive and president, said the company expects good free cash flow performance for 2009 and is continuing to "right size" throughout its global operations.