Materion Corporation (NYSE:MTRN) today reported fourth quarter and full-year 2011 results. The Company also confirmed its outlook for a stronger 2012. The results for the quarter and the outlook are consistent with those announced on February 8, 2012.
FOURTH QUARTER AND FULL-YEAR 2011 RESULTS
Sales for the fourth quarter were $334.4 million, down approximately 6%, or $21.6 million, compared to sales of $356.0 million for the fourth quarter of 2010. Higher average pass-through metal prices increased fourth quarter sales by $25.1 million compared to the fourth quarter of 2010. Excluding the impact of pass-though metal, sales were down $46.7 million, or approximately 13%, compared to the comparable period of the prior year.
The reduction in the fourth quarter sales volume was primarily due to lower demand from consumer electronics applications as customers were driving inventory levels down. Lower demand from the appliance and defense markets was also a factor in the fourth quarter year-over-year decline in sales. The weakness in these areas was offset, in part, by stronger demand from the energy, medical and automotive electronics markets.
Net income for the fourth quarter was $0.8 million, or $0.04 per share, diluted, compared to net income of $12.6 million, or $0.61 per share, diluted, for the same period of the prior year. Earnings were negatively impacted in the quarter by the significantly lower than expected sales, an unfavorable inventory adjustment, acquisition costs and higher than anticipated costs in the Company’s Beryllium and Composites Segment.
Sales for the full year 2011 were a record $1,527 million, up approximately 17%, or $224.4 million, compared to the full year 2010 sales of $1,303 million. Approximately 15% of the sales growth was due to higher pass-through metal prices. Organic growth was approximately 2% for the year. Stronger demand from the medical, energy, industrial components, telecom infrastructure, and automotive electronics markets were factors in the increase in sales year over year. Sales were negatively affected, primarily in the second half of the year, by weaker demand from the consumer electronics, appliance and defense and science markets.