Materion Corporation (NYSE:MTRN) today reported results for the second quarter 2012 and revised its earnings outlook for the year.
The Company reported net income for the quarter of $7.9 million, or $0.38 per share, diluted, on sales of $325.1 million.
SECOND QUARTER 2012 RESULTS
Sales for the second quarter were $325.1 million compared to the second quarter of 2011 quarterly sales of $424.7 million. Lower pass-through metal prices decreased sales in the second quarter of 2012 by approximately $12.3 million compared to the same period of the prior year. Net of pass-through metal impacts, sales were down by approximately 21% year over year. Weaker demand from the consumer electronics, defense and science, automotive electronics and appliance markets, offset in part by strength from the medical and energy markets, contributed to the year-over-year decline in sales.Comparing the second quarter sequentially to the first quarter of 2012, sales were down $28.5 million or approximately 8% from $353.6 million in the first quarter. Approximately two percentage points, or $5.6 million, of the sequential decline is related to lower pass-through metal prices. While market conditions and order entry were improving as the first quarter of 2012 ended and the second quarter began, demand levels fell off as the second quarter progressed. This led to lower than expected sales levels in the quarter. While sales were lower, orders exceeded billings by approximately $24.0 million and the book-to-bill ratio was a positive 1.07 for the second quarter. Net income for the second quarter was $7.9 million, or $0.38 per share, diluted, compared to $13.9 million, or $0.67 per share, diluted, for the second quarter of 2011 and sequentially to $6.1 million, or $0.30 per share, diluted, for the first quarter of 2012. The reduction in net income, when compared to the same quarter of the prior year is due primarily to the lower sales volume. When comparing sequentially to the first quarter, while sales were lower, diluted earnings per share increased primarily due to improved margins and lower costs. Net income for the second quarter was negatively impacted by costs related to the start-up of the beryllium pebble plant, the integration of EIS Optics Limited, which was acquired in late 2011, and the shutdown and relocation of the Company’s microelectronics packaging operations to Singapore. These factors and their costs, which were previously announced, were expected and in the aggregate totaled approximately $0.09 per share for the quarter and $0.17 per share for the year-to-date period.