Materion Cuts 2013 Profit View; To Buy Back Up To $50 Mln Of Stock - Quick Facts

(RTTNews) - Materion Corp.(MTRN) said that it lowered its 2013 earnings outlook, due to delayed shipments of high-margin defense and science product applications, weaker than expected seasonal factors in consumer electronics, and lower manufacturing yields early in the quarter in Performance Alloys.

The company lowered its 2013 GAAP earnings guidance to a range of $1.05 to $1.10 per share from the prior estimate of $1.25 to $1.30 per share. The outlook includes approximately $0.15 per share of costs related to the previously announced facility and product line rationalizations.

Excluding the $0.15 per share of costs, earnings on an adjusted basis are now expected to be in the range of $1.20 to $1.25 per share for fiscal 2013. Analysts polled by Thomson Reuters expect the company to report earnings of $1.43 per share for fiscal 2013. Analysts' estimates typically exclude special items. The company said in October that it expected adjusted earnings for the year to be in the range of $1.40 to $1.45 per share.

Entering 2014, orders are up approximately 9% when comparing to the business levels that existed at the beginning of 2013. The facility consolidations and product line rationalization initiatives of 2013 are forecasted to provide up to a $0.30 per share benefit in 2014. This benefit is expected to commence in the latter part of the first quarter and will be fully realized at the beginning of the second quarter. The new beryllium pebble plant is continuing to ramp up at a pace to meet production requirements for 2014, the company said.

The combination of the full benefit of the cost initiatives, improved order entry, the pebble plant production increase and the new product pipeline should result in a stronger second quarter versus the first quarter of 2014 and a stronger second half versus the first half of the year.

The company anticipates earnings for 2014 to be in the range of $1.75 to $1.95 per share. Analysts expect the company to report earnings of $1.98 per share for 2014.

The company stated that its Board has approved an authorization to repurchase up to $50 million of the Company's common stock. This authorization replaces the previous repurchase authorization of one million shares, of which approximately 600,000 shares were repurchased.