Materion Corporation (NYSE:MTRN) today reported stronger than expected results for the first quarter 2012 and revised its earnings outlook for the year.
The Company reported net income for the quarter of $6.1 million, or $0.30 per share, diluted, on sales of $353.6 million.
FIRST QUARTER 2012 RESULTS
Sales for the first quarter were $353.6 million, down $21.2 million, or approximately 6%, compared to sales of $374.8 million for the first quarter of 2011. Higher pass-through metal prices increased sales in the first quarter by $16.3 million compared to the same period last year. Net of pass-through metal prices, sales were down approximately 10% year over year. Weaker demand from consumer electronics, telecom infrastructure and automotive electronics contributed to the decline in sales.Comparing sequentially to the fourth quarter of 2011, first quarter 2012 sales were up $19.2 million, or approximately 6%, from $334.4 million. Coming off a weaker fourth quarter of 2011, order entry gained strength in the first quarter of 2012, reflecting stronger demand from the consumer electronics, industrial components and commercial aerospace, oil and gas, medical and automotive electronics markets. The improvement has continued into the early part of the second quarter. Net income for the first quarter was $6.1 million, or $0.30 per share, diluted, compared to net income of $11.8 million, or $0.57 per share, diluted, for the first quarter of the prior year. The reduction in net income is due primarily to the lower sales volume and a weaker product mix. ACQUISITION In March 2012, the Company acquired all of the outstanding shares of Aerospace Metal Composites Limited (AMC) located in Farnborough, England, for approximately $3.3 million net of cash received. AMC is a producer of high performance metal matrix composites that are sold into the automotive, aerospace and defense and other markets. These products and technologies complement the Beryllium and Composites business segment.