Brush Engineered Materials Inc. (NYSE:BW) today reported stronger than expected results for the second quarter of 2010 and raised its outlook for the year. The Company also announced the reinstatement of its stock repurchase program.
The Company reported net income for the second quarter of $13.7 million, or $0.67 per share, diluted, on a record quarterly sales level of $325.9 million. Sales in each of the first two quarters of 2010 established consecutive record highs.
Due to stronger margins and better than expected overall market conditions, the Company is raising its earnings per share outlook for the year to a range of $1.75 to $2.00 per share from the previously announced range of $1.45 to $1.75 per share.
SECOND QUARTER 2010 RESULTS
Sales for the second quarter of 2010 were up 87%, or $151.8 million, to a record of $325.9 million. This compares to sales of $174.1 million in the second quarter of 2009. The improvement in sales is primarily due to increased demand across the Company’s key markets including telecommunications and computer (from both the consumer electronics and infrastructure segments), data storage, automotive electronics, defense, oil and gas, commercial aerospace, and optics. The two recent acquisitions, Barr Associates, Inc. in the fourth quarter of 2009 and Academy Corporation in the first quarter of 2010, accounted for approximately $48.0 million, or 27 percentage points of the 87% increase in sales for the second quarter, while higher metal prices accounted for approximately $29.0 million, or 17 percentage points of the increase. The organic sales growth was 43%, or approximately $75.0 million.
The reported net income of $13.7 million, or $0.67 per share, diluted, for the second quarter compares to a net loss of $0.8 million, or $0.04 per share, diluted, for the second quarter of 2009. The increased sales volume, coupled with the benefit of the cost reductions that were implemented during 2009 and not added back proportionally with the increase in sales, substantially improved margins, leading to the significant increase in earnings.