Materion Corporation Announces Working With Lockheed Martin To Qualify As A Supplier Of Proprietary AlBeCast® Aluminum-Beryllium Investment Castings For F-35 Lightning II Airborne Optical Components
Materion Brush Beryllium & Composites, a Materion Corporation (NYSE:
MTRN) business, announced today it is working with Lockheed Martin to
qualify as a supplier of proprietary AlBeCast® aluminum-beryllium
Materion Brush Beryllium & Composites, a Materion Corporation (NYSE: MTRN) business, announced today it is working with Lockheed Martin to qualify as a supplier of proprietary AlBeCast® aluminum-beryllium investment castings for the F-35 Lightning II’s Electro-Optical Targeting System (EOTS). Materion, which recently announced an expansion of its investment casting operation at its Elmore facility, is the current supplier of AlBeMet®, an aluminum-beryllium composite alloy, for EOTS. The AlBeCast expansion extends Materion’s aluminum-beryllium product offering beyond powder metallurgy-derived materials by offering rapid prototyping and solidification modeling to provide investment cast parts with short lead times and competitive pricing. Aluminum-beryllium materials and castings provide favorable cost/benefit advantages for technically demanding customers requiring a combination of ultra-light weight, stiffness, mechanical stability and thermal properties. According to Lawrence Ryczek, Vice President and General Manager, Brush Beryllium & Composites, “Materion is proud to be the qualified supplier of AlBeMet for F-35 EOTS. The Materion casting technology group is working with Lockheed Martin to also qualify Materion as an investment casting supplier. We have provided casting prototypes and are excited for an opportunity to complement our AlBeMet product line with AlBeCast for this program.” Dr. Jim Yurko, Director, Technology, added, “With our recent casting technology breakthroughs, we believe aluminum-beryllium investment casting is optimal for more performance-driven applications with customers in the aerospace, defense and precision industrial equipment industries.” The AlBeCast casting investment follows a major expansion of the Elmore facility’s primary beryllium production capacity undertaken over the past several years as part of an innovative private-public partnership between Materion and the U.S. Department of Defense. This primary production capability supports the beryllium product lines for defense as well as critical civilian needs. Materion Corporation is headquartered in Mayfield Heights, Ohio. The Company, through its wholly owned subsidiaries, supplies highly engineered advanced materials to global markets. Products include precious and non-precious specialty metals, inorganic chemicals and powders, specialty coatings, specialty engineered beryllium alloys, beryllium and beryllium composites, and engineered clad and plated metal systems.
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.