Materion Corporation (NYSE:MTRN) today reported results for the third quarter 2012 and revised its earnings outlook for the year.
The Company reported net income for the quarter of $8.1 million, or $0.39 per share, diluted, on sales of $290.6 million. Results for the quarter were positively affected by improved margins and negatively affected by lower sales volumes and a higher than expected tax rate.
THIRD QUARTER 2012 RESULTS
Sales for the third quarter were $290.6 million compared to the third quarter of 2011 quarterly sales of $392.8 million, a decline of approximately 26%. A higher use of customer-supplied precious metal and lower pass-through metal prices decreased sales in the third quarter of 2012 by approximately $51.4 million compared to the same period of the prior year. Other factors, including lower sales volume from silver investment bar and jewelry product applications, pricing and changes in customer mix, resulted in a decline in sales of 13%. In the quarter, demand for our materials was weaker from the defense and science, automotive electronics, telecommunications infrastructure, energy and appliance markets. Helping to offset, in part, the lower demand for our materials from these markets was improved demand from the consumer electronics, medical, industrial components and aerospace markets.
Comparing the third quarter sequentially to the second quarter of 2012, sales were down $34.5 million, or approximately 10.6%, from $325.1 million. The higher use of customer-supplied metal and changes in pass-through metal prices lowered sales in the third quarter sequentially by approximately 4% compared to the second quarter of the year. In the third quarter, comparing sequentially to the second quarter of the year, demand for our materials was weaker in automotive electronics, in consumer electronics and in energy. Helping to offset the lower demand in those two markets was improved demand in defense and science, in industrial and commercial aerospace and in telecom infrastructure.