Materion Corporation Announces Supply Contract With Lockheed Martin For 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 has received a supply contract from
Lockheed Martin for proprietary AlBeCast® aluminum-beryllium investment
Materion Brush Beryllium & Composites, a Materion Corporation (NYSE: MTRN) business, announced today it has received a supply contract from Lockheed Martin for proprietary AlBeCast® aluminum-beryllium investment cast components for the F-35 Lightning II’s Electro-Optical Targeting System (EOTS). Terms were not disclosed. Materion, which announced recently it was in qualification with Lockheed Martin for the EOTS components, is the current supplier of AlBeMet®, an aluminum-beryllium composite alloy, for EOTS. 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, “We have made a significant investment in advancing our casting technology, and this contract adds to our growing number of sales orders in the defense and semiconductor markets.” The AlBeCast casting investment follows the installation and ongoing ramp-up of the primary beryllium production facility at Materion’s Elmore, Ohio, operation undertaken through an innovative private-public partnership between the Company 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 is the world’s only mine-to-mill fully integrated beryllium producer. 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.