Ceradyne cuts full-year outlook on charges
Tuesday October 28, 12:25 pm ET
Ceradyne cuts 2008 outlook on charges, 'modest' armor sales, sees disappointing 2009 results
COSTA MESA, Calif. (AP) -- Ceradyne Inc., which makes ceramics for military and other applications, cut its full-year outlook on Tuesday, citing one-time charges in the third quarter and "modest" fourth-quarter body armor shipments.
The company said it now expects full-year earnings between $4 and $4.15 per share on sales between $695 million and $700 million. Previously, it guided for earnings between $4.25 and $4.80 per share on revenue of $710 million and $750 million.
Analysts polled by Thomson Reuters expect $4.53 per share in earnings and $728.8 million in revenue.
Ceradyne attributed the guidance cut to one-time charges in the third quarter totaling 32 cents per share related to an acquisition and reduction in the value of its auction-rate securities investments. It also said it expects modest shipments of its XSAPI body armor in the fourth quarter.
In addition, Ceradyne issued 2009 earnings guidance well below Wall Street expectations. It guided for a profit of between $3 and $3.25 per share on sales between $640 million and $650 million.
Analysts call for $4.83 per share on $732.8 million in sales.
Shares of Ceradyne plunged $7.20, or 29.3 percent to $17.38 in morning trading. On Tuesday, the company reported a steep decline in its third-quarter profit due to the acquisition charges and weaker sales |
