Brush Engineered warns of wider fourth-quarter loss
CLEVELAND, Dec 28 (Reuters) - Brush Engineered Materials Inc. (NYSE:BW - news), a producer of beryllium products and alloys, on Friday warned its fourth-quarter loss may exceed 60 cents, due to slower-than-expected sales in telecommunications and computer markets and shipment delays by customers.
The Cleveland-based company had previously projected a loss of 50 cents.
In addition to slow sales, Brush said earnings will also be hit by expenses related to more cost-cutting measures, including previously announced job cuts, extended facility shutdowns, overhead spending reductions, employee benefit changes, and cutbacks in costs of purchased materials, supplies, and services.
Brush said it sees fourth-quarter sales down by about 15 percent, from third-quarter sales of $106.2 million. It previously forecast sales to be down by up to 10 percent.
``Order entry rates appear to have bottomed in the fourth quarter and our backlog has begun to increase in a number of our businesses,'' said Chief Executive Gordon Harnett.
Harnett added that assuming order entry rates continue improving, resulting higher sales, and the cost-cutting moves should bring it ``significantly improved financial performance'' in the coming quarters.
This is what I have been expecting. The cost cutting that was impossible when they were running full-tilt will now be possible. This should allow future profit margins to increase and when sales pick up, they should be very profitable. |
