Brush Engineered Materials Inc. (NYSE:BW) today reported stronger than expected results for the third quarter of 2010 and raised its outlook for the full year.
The Company reported net income for the third quarter of $13.4 million, or $0.65 per share, diluted, on sales of $325.3 million. Sales for the third quarter were the second highest in the Company’s history, slightly below the Company’s second quarter 2010 record sales of $325.9 million.
Due to the continued broad-based strength in order entry, improved margins and better than expected economic conditions, the Company is raising its earnings per share outlook for the full year to a range of $2.00 to $2.10 per share from the previously announced range of $1.75 to $2.00 per share.
THIRD QUARTER 2010 RESULTS
Sales for the third quarter of 2010 were up 71%, or $134.8 million, to $325.3 million. This compares to sales of $190.5 million in the third quarter of 2009. The improvement in sales is primarily due to increased demand across many of the Company’s key markets, including consumer electronics, telecom infrastructure, energy, defense, commercial aerospace, and automotive electronics. The two most recent acquisitions, Barr Associates, Inc. in the fourth quarter of 2009 and Academy Corporation in the first quarter of 2010, accounted for approximately $55.1 million of the increase in sales for the third quarter and higher metal prices accounted for approximately $28.9 million of the increase. Organic sales growth was 27%, or approximately $50.8 million.
The reported net income of $13.4 million, or $0.65 per share, diluted, for the third quarter compares to $0.1 million, or $0.01 per share, diluted, for the third quarter of 2009. The increased sales volume, along with the benefit of the cost reductions that were implemented during 2009, improved pricing and a better product mix led to improved margins and the increase in earnings.