CRDN Qtr Performance blow out earnings!
Reuters
UPDATE - Ceradyne 2nd-qtr profit surges, shares rise
Thursday July 22, 9:37 am ET
(Adds company comment, details, stock movement)
NEW YORK, July 22 (Reuters) - Ceradyne Inc. (NasdaqNM:CRDN - News) on Thursday said second-quarter earnings nearly tripled on surging military demand for its lightweight ceramic body armor used in the war in Iraq.
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The Costa Mesa, California, company said net income rose to $6.5 million, or 40 cents a share, compared with $2.2 million, or 17 cents per share, a year ago on a split-adjusted basis.
Results beat analysts' forecast of 31 cents a share, according to Reuters Estimates, and shares rose 3 percent in early trading.
Ceradyne, which also makes auto components and orthodontic brackets, said revenue jumped 77 percent to $39.2 million from $22.1 million a year ago. Analysts expected $37.6 million.
Ceradyne shares have risen 59 percent this year, recently touching record highs after it said it would diversify into industrial markets by buying Germany's ESK Ceramics for $136 million in cash.
Ceradyne said the planned acquisition should decrease its reliance on military contracts to about 40 percent from 65 percent of sales and reduce the share of U.S. sales to 59 percent from 95 percent. The combined company should raise annual revenue to $250 million.
Going forward, Ceradyne will "continue to aggressively seek additional defense business based on our lightweight armor technology and at the same time pursue non-defense products and markets, which will make us a balanced company," said President and Chief Executive Joel Moskowitz in a statement.
Total backlog, a measure of unfilled orders, was $95.9 million at the end of June, up from $42.6 million a year ago.
Shares rose $1 to $37.07 on Nasdaq. |
