Brush Engineered Materials Inc. (NYSE:BW) today reported stronger than expected results for the fourth quarter and the full-year 2010. In addition, the Company provided an initial outlook for 2011.
FOURTH QUARTER AND FULL-YEAR 2010 RESULTS
Sales for the fourth quarter were a record $356.0 million and EPS was $0.61 per share, diluted. The fourth quarter performance thus, in turn, takes sales for the full year 2010 to a record $1.302 billion and earnings to $2.25 per share, above the previously announced estimated range of $2.00 to $2.10 per share. The stronger than expected performance for the quarter was due to stronger than anticipated demand, lower than expected costs and higher margin levels.
Fourth quarter sales were up approximately 65%, or $140.8 million compared to the fourth quarter of 2009 sales of $215.2 million. The acquisitions of Barr Associates, Inc. and Academy Corporation in the fourth quarter of 2009 and the first quarter of 2010, respectively, accounted for $70.1 million of the sales increase. Higher pass-through metal prices accounted for approximately $26.0 million of the increase and organic sales growth in the quarter was approximately 21%, or $44.7 million. The improvement in organic sales is primarily due to increased demand across key markets including consumer electronics, telecom infrastructure, energy, defense and automotive electronics.Net income was $12.6 million, or $0.61 per share, diluted, for the fourth quarter, which compares to a net loss of $3.6 million, or $0.18 per share for the fourth quarter of the prior year. The significant improvement in earnings for the quarter was driven by the increased sales volume and improved margins. Sales for the full year 2010 were $1.302 billion, up approximately 82% or $587.1 million, compared to the full year 2009 sales of $715.2 million. Net income for 2010 was $46.4 million, or $2.25 per share, diluted, compared to a net loss of $12.4 million, or $0.61 per share, for 2009.