Materion Cuts FY13 Outlook - Update

(RTTNews) - Specialty metal products company Materion Corp. (MTRN), Tuesday lowered its earnings outlook for the full year, citing delayed shipments of high-margin product applications and weaker than expected business environment.

Chief Executive Richard Hipple said, "While I'm disappointed in our weaker than anticipated performance in the second half of 2013, we have taken significant steps to reduce our cost structure and position the Company for improved earnings momentum as we enter 2014."

The Mayfield Heights, Ohio-based company lowered its 2013 earnings guidance to a range of $1.05 to $1.10 per share, from a prior estimate of $1.25 to $1.30 per share.

The full year outlook includes about $0.15 per share of costs related to the facility and product line rationalizations.

Excluding special items, adjusted earnings for the year are now expected in a range of $1.20 to $1.25 per share. Analysts polled by Thomson Reuters currently expect earnings of $1.43 per share for 2013. Analysts' estimates typically exclude special items.

The company in October had forecast adjusted earnings of $1.40 to $1.45 per share for 2013.

Materion said the cut to its outlook was due mainly 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.

Looking forward to 2014, the company anticipate earnings in the range of $1.75 to $1.95 per share. Analysts currently see earnings of $1.98 per share for 2014.

The company also revealed an authorization to repurchase up to $50 million of its common stock.

MTRN is currently trading at $29.78, up $0.21 or 0.71%, on the Nasdaq.