Materion Corporation (NYSE:MTRN) today provided an update to expected fourth quarter 2012 results and announced preliminary guidance for the full-year 2013. In addition, the Company announced that a charge to fourth quarter 2012 earnings is possible pending the outcome of investigations of year-end physical inventory results and a potential related theft at the Company’s Albuquerque, New Mexico facility.
FOURTH QUARTER 2012 STRONGER THAN EXPECTED
Business conditions and margins in the fourth quarter were better than initially anticipated and, as a result, fourth quarter earnings are now expected to be significantly higher, subject to the discussion below regarding a possible charge.
The Company had earlier provided guidance that full-year 2012 earnings would be in the range of $1.30 to $1.35 per share. This translates to fourth quarter guidance of $0.23 to $0.28 per share, which included approximately $0.10 per share of costs related to previously announced plans to consolidate certain manufacturing operations. Excluding these costs, results for the quarter were expected to be in the $0.33 to $0.38 per share range.
Results for the quarter are now expected to be in the range of $0.33 to $0.36 per share, which includes $0.13 per share as opposed to $0.10 per share for the aforementioned costs to consolidate certain manufacturing operations, as well as an unrelated tax benefit of $0.09 per share due to changes in projections. Excluding these costs and the tax benefit, results for the quarter are now expected to be in the $0.37 to $0.40 per share range. These results are preliminary and unaudited and are therefore subject to change.
POSSIBLE FOURTH QUARTER 2012 CHARGE
In January 2013, as the year-end physical inventory was being taken, the Company became aware of a potential theft of precious metal from its Albuquerque, New Mexico refinery. An internal investigation ensued, an arrest was made and a minor amount of stolen material was recovered.