- Net sales were $275.4 million, which compares to sales of $290.6 million in the third quarter of 2012 and sales of $306.1 million in the second quarter of 2013. Value-added sales (sales less the cost of pass-through metals) were $148.7 million compared to $152.3 million for the prior-year quarter and $159.3 million in the second quarter 2013. The decline in both comparisons is due primarily to the previously reported delays of high-margin shipments. In addition, seasonality is a factor in the sequential comparison.
- Earnings per share was $0.24, which compares to $0.39 per share in the prior-year quarter and $0.43 per share in the second quarter of 2013. The decline in both comparisons is due to a combination of factors, including the aforementioned shipment delays, weaker mix and weaker manufacturing performance.
- Gross margin as a percent of sales was 16.4% in the third quarter of 2013 compared to 18.0% in the same quarter of 2012. Gross margin as a percent of value-added sales was 30.3%, which compares to 34.4% in the third quarter of 2012 and 33.1% in the second quarter of 2013.
- Operating profit as a percent of sales was 2.2% for the third quarter of 2013, compared to 4.6% in the third quarter of 2012. Operating profit as a percent of value-added sales was 4.0% which compares to 8.8% for the third quarter of 2012 and 8.4% in the second quarter of 2013.
- The effective tax rate was a low 2.7% in the third quarter 2013 due to revisions to the projections for the full year and net favorable discrete items recorded during the period.
- Production at the beryllium pebble plant was the highest since start-up and production levels, at quarter end, were ahead of the rates targeted for the fourth quarter of 2013.
- As previously announced, the Company is planning to take additional facility and product rationalization actions during the fourth quarter of 2013 that are expected to favorably impact 2014 performance by up to $0.30 per share.
- Excluding up to $0.15 in fourth quarter 2013 charges related to the above-noted facility and product rationalizations, the Company now expects earnings for the year to be in the range of $1.40 to $1.45 per share, assuming no significant changes to global economic conditions.
- The Company declared a fourth quarter dividend of $0.08 per share payable on December 3, 2013 to shareholders of record on November 15, 2013.
Materion Corporation Reports Third Quarter Financial Results
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