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Technology Stocks : Ceradyne (CRDN) -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (201)	10/28/2008 12:37:51 PM
From: Peter V	Respond to of 202

Ceradyne posts lower profit, scales back forecast Tue Oct 28, 2008 11:38am EDT * Q3 profit falls, misses Wall Street consensus * Cuts full-year profit forecast, sees 2009 below Street * Shares fall almost 31 percent NEW YORK, Oct 28 (Reuters) - Ceradyne Inc (CRDN.O: Quote, Profile, Research, Stock Buzz) reported a sharp drop in third-quarter profit and forecast earnings well below Wall Street's forecast as it expects a dip in sales of its body armor plates, sending its stock down nearly 31 percent. Ceradyne, whose ESAPI and XSAPI ceramic plates are used in armor worn by U.S. troops in Iraq and Afghanistan, said on Tuesday its largest contract was on hold due to a protest from a rival bidder, and there was uncertainty over future Pentagon orders for the U.S. military. Its shares fell 30.7 percent to a 4-1/2 year low of $17.03 on Nasdaq. The company, based in Costa Mesa, California, reported quarterly profit of $19.4 million, or 73 cents per share, down from $32.7 million, or $1.16 per share, in the year-ago quarter. That included a one-time charge for paying incentives to employees of a small company it acquired last year, and a loss from writing down the value of some investments. Excluding those items, it reported earnings of $1.04 per share. That was still below Wall Street's average estimate of $1.13 per share, according to Reuters Estimates. Ceradyne's revenue has risen sharply over the past few years due to strong demand for its body armor plates and industrial ceramics, but the company scaled back forecasts for this year due to delays in a key military contract. Earlier this month, Ceradyne won its largest contract yet to supply ceramic body armor plates to the U.S. Army, but said it was told by the Army to stop work on the order on Monday pending a protest on the contract award by defense contractor BAE Systems (BAES.L: Quote, Profile, Research, Stock Buzz). It said the protest should be resolved soon, but along with uncertainties over future Pentagon contracts, it would cause a reduction in deliveries for the rest of the year and next year. Ceradyne said it is now expecting full-year profit in a range of $4.00 to $4.15 per share, including the one-time third-quarter charges, down from its last forecast of $4.25 to $4.80. Analysts were expecting $4.55, on average. For next year, it made an initial earnings forecast of $3 to $3.25 per share. Analysts are expecting $4.47, on average.