Materion Corporation Sees Q4 EPS Well Below Low End of Previous Guidance of $2.10-2.20

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Materion Corporation
MTRN
today revised its earnings estimates for the full year 2011. While the Company, at this time, expects a profitable fourth quarter, the final results for the full year will likely be well below the low end of its previously announced range of $2.10 to $2.20 per share. The reduction is due to significantly lower than expected sales in the fourth quarter, higher than anticipated costs in the Company's Beryllium and Composites Segment and an inventory valuation adjustment. In the fourth quarter of 2011, the Company did not experience the increase in sales normally associated with the consumer electronics holiday period. Instead, the Company believes that its customers were driving inventories down to very low levels, which, in turn, resulted in sales for the quarter being well below what the Company expected. It is now anticipated that 2011 sales, when reported, will be approximately $1.525 billion, or $35.0 million to $55.0 million below the Company's previous range of $1.56 billion to $1.58 billion. Approximately $25.0 million of the reduction is related to pass through metal price declines, while the balance of $10.0 million to $30.0 million is due to the decline in sales volume.
Posted In: NewsGuidance
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