Wrapped Bearings Now Available In Premium ToughMet® Alloy
Users of standard-sized wrapped bearings now have a cost-effective
option for higher-performance bearings made of ToughMet® material, a
unique copper-nickel-tin alloy made exclusively by Materion Performance
Users of standard-sized wrapped bearings now have a cost-effective option for higher-performance bearings made of ToughMet® material, a unique copper-nickel-tin alloy made exclusively by Materion Performance Alloys, a Materion Corporation (NYSE:MTRN) business. As a result of a new collaboration between Materion and Bowman International Ltd. (Bowman), a U.K. company, Bowman has launched a new product line, BowMet®, featuring standard size, thin-walled wrapped bearings that will outperform steel, bronze and other materials even in the most severe conditions. Bearings made of ToughMet carry heavier loads, last longer, require less maintenance and virtually eliminate downtime for unplanned repairs. With its unique combination of strength, lubricity, and corrosion, high temperature and wear resistance under severe loading, the alloy has become one of Materion’s most successful materials across many demanding markets such as mining, oil and gas, commercial aerospace and auto racing. Users who make the switch to ToughMet alloy have fewer warranty claims, longer maintenance cycles, improved reliability and lower maintenance costs. Previously, thin-walled bearings made of ToughMet had to be custom ordered and machined from solid bar or thick walled tube. In that process, up to 75 percent of the material could be wasted, making ToughMet less cost-effective in applications traditionally served by wrapped bearings. Together, Bowman and Materion developed a method to wrap thin sheets of ToughMet into BowMet bearings, minimizing scrap losses and reducing production costs. By virtually eliminating the waste, Bowman can pass on the cost savings to users, making ToughMet a viable upgrade over traditional wrapped bearings and other types of bearing materials and systems. BowMet heavy-duty bearings are ideally suited for use in heavy construction equipment, off-road vehicles, quarrying equipment, heavy military vehicles, materials handling equipment, heavy duty production machinery, racing engines, steel mill rolls, injection molding machines, scissor lifts and marine applications, among many others. Bowman stocks BowMet in a range of standard catalog sizes, providing added simplicity, especially for smaller quantity orders.
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.