Materion Corporation (NYSE:MTRN) today announced the following:
- The Company is revising its GAAP earnings range for 2013 to $1.05 to $1.10 per share from $1.25 to $1.30 per share. The above includes approximately $0.15 per share of costs related to the previously announced facility and product line rationalizations. Excluding the $0.15 per share of costs, earnings on an adjusted basis are expected to be in the range of $1.20 to $1.25 per share.
- Earnings for 2014 are expected to be well above those for 2013 and in the range of $1.75 to $1.95 per share.
- The Board of Directors has approved an authorization to repurchase up to $50 million of the Company’s common stock.
REVISED 2013 FORECAST
The aforementioned revision to the 2013 earnings range is due to delayed shipments of high-margin defense and science product applications, weaker than expected seasonal factors in consumer electronics, and lower manufacturing yields early in the quarter in Performance Alloys.
2014 OUTLOOKEntering 2014, orders are up approximately 9% when comparing to the business levels that existed at the beginning of 2013. The facility consolidations and product line rationalization initiatives of 2013 are forecasted to provide up to a $0.30 per share benefit in 2014. This benefit is expected to commence in the latter part of the first quarter and will be fully realized at the beginning of the second quarter. The new beryllium pebble plant is continuing to ramp up at a pace to meet production requirements for 2014. The combination of the full benefit of the cost initiatives, improved order entry, the pebble plant production increase and the new product pipeline should result in a stronger second quarter versus the first quarter of 2014 and a stronger second half versus the first half of the year. Therefore, the earnings forecast for 2014 is in the range of $1.75 to $1.95 per share.