Materion Corporation Doubles Capacity To Produce High-Performance Alloys
Materion Brush Performance Alloys (Materion) has added a vertical
continuous caster (VCC) to its Lorain, Ohio facility to meet growing
demands for ToughMet, a unique copper-nickel-tin alloy that is used in
the oil and...
Materion Brush Performance Alloys (Materion) has added a vertical continuous caster (VCC) to its Lorain, Ohio facility to meet growing demands for ToughMet, a unique copper-nickel-tin alloy that is used in the oil and gas, aerospace, heavy machinery and electronics markets. The new VCC, which started producing materials in July, will double Materion’s capacity for ToughMet and other high-performance alloys. Materion commissioned its first VCC in 1997 and introduced the ToughMet product line in 1999. The alloy is sold in bulk, strip, rod/wire and finished machined component product forms. With its unique combination of strength, lubricity, and corrosion and wear resistance under severe loading conditions, this copper-nickel-tin alloy has become one of the Company’s most successful materials across many different markets. ToughMet shipments have grown at a compound rate greater than 20 percent per year since 2003 and growth is expected to continue at or near this pace for the next three years. Materion Brush Performance Alloys, headquartered in Mayfield Heights, Ohio, is a unit of Materion Brush Inc., a wholly owned subsidiary of Materion Corporation (NYSE: MTRN). Through its subsidiaries, Materion supplies worldwide markets with alloy products, beryllium products, electronic products, precious metal products, and engineered material systems. Around the world, the Company's engineered materials can be found in technically demanding end-use products within the telecommunications and computer, automotive electronics, appliance, industrial components, plastics tooling, optical media, oil and gas, aerospace and defense, and off-highway and mining equipment markets. Visit www.Materion.com for additional information.
Looking at the universe of stocks we cover at Dividend Channel, on 2/17/15, Materion Corp will trade ex-dividend, for its quarterly dividend of $0.085, payable on 3/3/15. As a percentage of MTRN's recent stock price of $37.16, this dividend works out to approximately 0.23%.
Shareholders of Materion Corp looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the June 2015 covered call at the $40 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.3% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stock rises there and is called away, but MTRN shares would have to climb 11.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 15.1% return from this trading level, in addition to any dividends collected before the stock was called.
In trading on Friday, shares of Materion Corp crossed below their 200 day moving average of $34.17, changing hands as low as $34.10 per share. Materion Corp shares are currently trading off about 1.6% on the day.