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Press Release

Materion Corporation Reports Record Third Quarter 2019 Financial Results, Narrows Full-year Earnings Guidance, and Declares Fourth Quarter Dividend

October 24, 2019 at 8:03 AM EDT

MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--Oct. 24, 2019-- Materion Corporation (NYSE:MTRN) today reported third quarter 2019 financial results.

Third Quarter 2019 Results

Net sales were $306.0 million; value-added sales increased 4% to $188.6 million

Operating profit was $6.3 million; adjusted operating profit of $21.2 million was up 13% year-over-year

Diluted earnings per share were $0.17; Adjusted earnings per share were $0.81, up 19% versus the prior year

Earnings Guidance

The Company is narrowing its full-year 2019 adjusted earnings guidance within the previously announced range to $3.15 to $3.20 per share, diluted

“I am pleased we delivered the eleventh consecutive quarter of year-over-year value-added sales and profit growth, despite a challenging macroeconomic environment,” stated Jugal Vijayvargiya, President and Chief Executive Officer. “We remain committed to executing our multi-pillar One Materion strategy and will continue to make the necessary investments to deliver growth over the long term.”

THIRD QUARTER 2019 RESULTS

Net sales for the third quarter of 2019 were $306.0 million, compared to $297.2 million in the prior year third quarter. Value-added sales of $188.6 million were a third quarter record, up 4% from the prior year primarily due to end market strength and new application wins in the aerospace and defense markets, plus the timing of beryllium hydroxide shipments. These positives more than offset weakness in the automotive, energy, and telecom and data center end markets.

Operating profit for the third quarter was $6.3 million, compared to $18.7 million in the prior year. Adjusting operating profit was $21.2 million, or 11.2% of value-added sales, a third quarter record and the fifth consecutive quarter with double-digit profit margins. Adjusted operating profit included non-cash goodwill and asset impairment charges of $14.1 million related to the Large Area Coatings product line included in the Precision Coatings segment. In addition, operating profit was adjusted for restructuring charges of $0.8 million related to cost reduction actions.

Third quarter 2019 net income was $3.5 million, or $0.17 per share, diluted, compared to $0.97 per share, diluted, in 2018. Excluding the non-recurring special items, adjusted net income was $16.8 million, or $0.81 per share, an increase of 19% versus the prior year adjusted net income of $0.68 per share.

OUTLOOK

The current macroeconomic environment remains challenged due to an elevated risk of uncertainty impacting a number of the end markets we serve, including automotive, industrial, energy, and telecom and data center. We remain focused on executing our multi-pillar strategy and making the necessary investments to deliver long-term growth.

Based on the current order entry and outlook, we are narrowing our full-year 2019 adjusted earnings guidance within the previously announced range to $3.15 to $3.20 per share. The midpoint of the revised guidance represents a 33% increase from the prior year.

ADJUSTED EARNINGS GUIDANCE

It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 and 5 to this press release.

DIVIDEND ANNOUNCEMENT

Today the Company announced the declaration of its fourth quarter dividend of $0.11 per share payable on December 4, 2019 to shareholders of record on November 8, 2019.

CONFERENCE CALL

Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, October 24, 2019. The conference call will be available via webcast through the Company’s website at www.materion.com or through www.InvestorCalendar.com. By phone, please dial (877) 407-0778. Callers outside the U.S. can dial (201) 689-8565. A replay of the call will be available until November 7, 2019 by dialing (877) 481-4010 or (919) 882-2331; please reference replay ID number 41631. The call will also be archived on the Company’s website.

FORWARD-LOOKING STATEMENTS

Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements, in particular, the outlook provided above. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors.

These factors include, in addition to those mentioned elsewhere herein:

  • Actual net sales, operating rates, and margins for 2019;
  • The global economy, including the impact of tariffs and trade agreements;
  • The impact of any U.S. Federal Government shutdowns and sequestrations;
  • The condition of the markets which we serve, whether defined geographically or by segment, with the major market segments being: semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center.
  • Changes in product mix and the financial condition of customers;
  • Our success in developing and introducing new products and new product ramp-up rates;
  • Our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values;
  • Our success in identifying acquisition candidates and in acquiring and integrating such businesses;
  • The impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions;
  • Our success in implementing our strategic plans and the timely and successful completion and start-up of any capital projects;
  • Other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal financing fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company’s stock price on the cost of incentive compensation plans;
  • The uncertainties related to the impact of war, terrorist activities, and acts of God;
  • Changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations;
  • The conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; and
  • The risk factors as set forth in Item 1A of our 2018 Annual Report on Form 10-K.

Materion Corporation is headquartered in Mayfield Heights, Ohio. The Company, through its wholly owned subsidiaries, supplies highly engineered advanced enabling materials to global markets. Products include precious and non-precious specialty metals, inorganic chemicals and powders, specialty coatings, specialty engineered beryllium alloys, beryllium and beryllium composites, and engineered clad and plated metal systems.

Attachment 1

Materion Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)

 

 

Third Quarter Ended

 

Nine Months Ended

(In thousands except per share amounts)

September 27,
2019

 

September 28,
2018

 

September 27,
2019

 

September 28,
2018

Net sales

$

305,979

 

 

$

297,193

 

 

$

905,263

 

 

$

909,745

 

Cost of sales

241,034

 

 

232,258

 

 

701,412

 

 

724,692

 

Gross margin

64,945

 

 

64,935

 

 

203,851

 

 

185,053

 

Selling, general, and administrative expense

36,311

 

 

38,872

 

 

116,266

 

 

115,807

 

Research and development expense

5,262

 

 

4,250

 

 

13,064

 

 

11,753

 

Goodwill impairment charges

11,560

 

 

 

 

11,560

 

 

 

Asset impairment charges

2,581

 

 

 

 

2,581

 

 

 

Other — net

2,942

 

 

3,147

 

 

9,954

 

 

10,384

 

Operating profit

6,289

 

 

18,666

 

 

50,426

 

 

47,109

 

Interest expense — net

436

 

 

613

 

 

1,402

 

 

2,010

 

Other non-operating expense—net

127

 

 

800

 

 

3,484

 

 

1,679

 

Income before income taxes

5,726

 

 

17,253

 

 

45,540

 

 

43,420

 

Income tax expense (benefit)

2,263

 

 

(2,713

)

 

9,631

 

 

1,746

 

Net income

$

3,463

 

 

$

19,966

 

 

$

35,909

 

 

$

41,674

 

Basic earnings per share:

 

 

 

 

 

 

 

Net income per share of common stock

$

0.17

 

 

$

0.99

 

 

$

1.76

 

 

$

2.06

 

Diluted earnings per share:

 

 

 

 

 

 

 

Net income per share of common stock

$

0.17

 

 

$

0.97

 

 

$

1.74

 

 

$

2.02

 

Weighted-average number of shares of common stock outstanding:

 

 

 

 

 

 

 

Basic

20,401

 

 

20,241

 

 

20,351

 

 

20,199

 

Diluted

20,677

 

 

20,648

 

 

20,645

 

 

20,607

 

Attachment 2

Materion Corporation and Subsidiaries

Consolidated Balance Sheets

 

 

 

(Unaudited)

 

 

(Thousands)

 

September 27, 2019

 

December 31, 2018

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

94,526

 

 

$

70,645

 

Accounts receivable, net

 

165,477

 

 

130,538

 

Inventories, net

 

191,956

 

 

214,871

 

Prepaid and other current assets

 

23,658

 

 

23,299

 

Total current assets

 

475,617

 

 

439,353

 

Deferred income taxes

 

1,848

 

 

5,616

 

Property, plant, and equipment

 

909,254

 

 

898,251

 

Less allowances for depreciation, depletion, and amortization

 

(675,039

)

 

(647,233

)

Property, plant, and equipment—net

 

234,215

 

 

251,018

 

Operating lease, right-of-use asset

 

25,054

 

 

 

Intangible assets

 

6,692

 

 

6,461

 

Other assets

 

17,452

 

 

7,236

 

Goodwill

 

78,961

 

 

90,657

 

Total Assets

 

$

839,839

 

 

$

800,341

 

Liabilities and Shareholders’ Equity

 

 

 

 

Current liabilities

 

 

 

 

Short-term debt

 

$

857

 

 

$

823

 

Accounts payable

 

43,675

 

 

49,622

 

Salaries and wages

 

40,069

 

 

47,501

 

Other liabilities and accrued items

 

35,549

 

 

33,301

 

Income taxes

 

1,637

 

 

2,615

 

Unearned revenue

 

5,188

 

 

5,918

 

Total current liabilities

 

126,975

 

 

139,780

 

Other long-term liabilities

 

11,021

 

 

14,764

 

Operating lease liabilities

 

19,453

 

 

 

Finance lease liabilities

 

17,535

 

 

15,221

 

Retirement and post-employment benefits

 

31,026

 

 

38,853

 

Unearned income

 

29,270

 

 

32,563

 

Long-term income taxes

 

3,121

 

 

2,993

 

Deferred income taxes

 

2,175

 

 

195

 

Long-term debt

 

1,467

 

 

2,066

 

Shareholders’ equity

 

597,796

 

 

553,906

 

Total Liabilities and Shareholders’ Equity

 

$

839,839

 

 

$

800,341

 

Attachment 3

Materion Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Nine Months Ended

(Thousands)

 

September 27,
2019

 

September 28,
2018

Cash flows from operating activities:

 

 

 

 

Net income

 

$

35,909

 

 

$

41,674

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation, depletion, and amortization

 

31,955

 

 

26,506

 

Amortization of deferred financing costs in interest expense

 

720

 

 

720

 

Stock-based compensation expense (non-cash)

 

5,230

 

 

3,782

 

Deferred income tax expense (benefit)

 

5,725

 

 

(5,341

)

Impairment charges

 

14,141

 

 

 

Net pension curtailments and settlements

 

3,296

 

 

359

 

Changes in assets and liabilities:

 

 

 

 

Decrease (increase) in accounts receivable

 

(36,146

)

 

(10,274

)

Decrease (increase) in inventory

 

22,089

 

 

19,754

 

Decrease (increase) in prepaid and other current assets

 

(416

)

 

4,648

 

Increase (decrease) in accounts payable and accrued expenses

 

(14,114

)

 

(10,290

)

Increase (decrease) in unearned revenue

 

(728

)

 

2,365

 

Increase (decrease) in interest and taxes payable

 

(1,499

)

 

5,557

 

Domestic pension plan contributions

 

(4,500

)

 

(38,000

)

Other-net

 

(2,126

)

 

7,783

 

Net cash provided by operating activities

 

59,536

 

 

49,243

 

Cash flows from investing activities:

 

 

 

 

Payments for purchase of property, plant, and equipment

 

(18,193

)

 

(21,809

)

Payments for mine development

 

(1,903

)

 

(5,192

)

Proceeds from sale of property, plant, and equipment

 

17

 

 

26

 

Net cash used in investing activities

 

(20,079

)

 

(26,975

)

Cash flows from financing activities:

 

 

 

 

Repayment of long-term debt

 

(599

)

 

(513

)

Principal payments under finance lease obligations

 

(894

)

 

(573

)

Cash dividends paid

 

(6,612

)

 

(6,262

)

Repurchase of common stock

 

(199

)

 

 

Payments of withholding taxes for stock-based compensation awards

 

(4,832

)

 

(3,006

)

Deferred financing costs

 

(2,018

)

 

 

Net cash used in financing activities

 

(15,154

)

 

(10,354

)

Effects of exchange rate changes

 

(422

)

 

(146

)

Net change in cash and cash equivalents

 

23,881

 

 

11,768

 

Cash and cash equivalents at beginning of period

 

70,645

 

 

41,844

 

Cash and cash equivalents at end of period

 

$

94,526

 

 

$

53,612

 

Attachment 4

Materion Corporation and Subsidiaries

Reconciliation of Non-GAAP Measure - Value-added Sales

(Unaudited)

 

 

Third Quarter Ended

 

Nine Months Ended

(Millions)

September 27, 2019

 

September 28, 2018

 

September 27, 2019

 

September 28, 2018

Net Sales

 

 

 

 

 

 

 

 

 

 

 

Performance Alloys and Composites

$

130.7

 

 

 

$

124.1

 

 

 

$

393.1

 

 

 

$

372.1

 

 

Advanced Materials

147.7

 

 

 

144.1

 

 

 

424.9

 

 

 

448.0

 

 

Precision Coatings

27.6

 

 

 

29.0

 

 

 

87.3

 

 

 

89.7

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Total

$

306.0

 

 

 

$

297.2

 

 

 

$

905.3

 

 

 

$

909.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Pass-through Metal Cost

 

 

 

 

 

 

 

 

 

 

 

Performance Alloys and Composites

$

18.7

 

 

 

$

19.2

 

 

 

$

56.3

 

 

 

$

56.8

 

 

Advanced Materials

92.1

 

 

 

88.8

 

 

 

253.5

 

 

 

277.1

 

 

Precision Coatings

5.2

 

 

 

6.0

 

 

 

19.2

 

 

 

19.7

 

 

Other

1.4

 

 

 

1.3

 

 

 

5.1

 

 

 

3.1

 

 

Total

$

117.4

 

 

 

$

115.3

 

 

 

$

334.1

 

 

 

$

356.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value-added Sales (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

Performance Alloys and Composites

$

112.0

 

 

 

$

104.9

 

 

 

$

336.8

 

 

 

$

315.3

 

 

Advanced Materials

55.6

 

 

 

55.3

 

 

 

171.4

 

 

 

170.9

 

 

Precision Coatings

22.4

 

 

 

23.0

 

 

 

68.1

 

 

 

70.0

 

 

Other

(1.4

)

 

 

(1.3

)

 

 

(5.1

)

 

 

(3.1

)

 

Total

$

188.6

 

 

 

$

181.9

 

 

 

$

571.2

 

 

 

$

553.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin

 

% of
VA

 

 

% of
VA

 

 

% of
VA

 

 

% of
VA

Performance Alloys and Composites

$

38.2

 

34

%

 

$

35.3

 

34

%

 

$

119.0

 

35

%

 

$

94.2

 

30

%

Advanced Materials

18.7

 

34

%

 

20.5

 

37

%

 

60.9

 

36

%

 

62.6

 

37

%

Precision Coatings

9.1

 

41

%

 

9.9

 

43

%

 

28.8

 

42

%

 

29.0

 

41

%

Other

(1.1

)

 

 

(0.8

)

 

 

(4.8

)

 

 

(0.8

)

 

Total

$

64.9

 

34

%

 

$

64.9

 

36

%

 

$

203.9

 

36

%

 

$

185.0

 

33

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

% of
VA

 

 

% of
VA

 

 

% of
VA

 

 

% of
VA

Performance Alloys and Composites

$

18.8

 

17

%

 

$

16.7

 

16

%

 

$

57.1

 

17

%

 

$

38.9

 

12

%

Advanced Materials

6.2

 

11

%

 

6.9

 

12

%

 

19.4

 

11

%

 

18.4

 

11

%

Precision Coatings

(11.2

)

(50

)%

 

3.5

 

15

%

 

(5.2

)

(8

)%

 

9.1

 

13

%

Other

(7.5

)

 

 

(8.4

)

 

 

(20.9

)

 

 

(19.3

)

 

Total

$

6.3

 

3

%

 

$

18.7

 

10

%

 

$

50.4

 

9

%

 

$

47.1

 

9

%

 

Third Quarter Ended

 

Nine Months Ended

(Millions)

September 27, 2019

 

September 28, 2018

 

September 27, 2019

 

September 28, 2018

Special Items

 

 

 

 

 

 

 

 

 

 

 

Performance Alloys and Composites

$

 

 

 

$

 

 

 

$

 

 

 

$

 

 

Advanced Materials

 

 

 

 

 

 

 

 

 

 

 

Precision Coatings

14.5

 

 

 

 

 

 

14.5

 

 

 

 

 

Other

0.4

 

 

 

 

 

 

0.4

 

 

 

0.7

 

 

Total

$

14.9

 

 

 

$

 

 

 

$

14.9

 

 

 

$

0.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit Excluding Special Items

 

% of
VA

 

 

% of
VA

 

 

% of
VA

 

 

% of
VA

Performance Alloys and Composites

$

18.8

 

17

%

 

$

16.7

 

16

%

 

$

57.1

 

17

%

 

$

38.9

 

12

%

Advanced Materials

6.2

 

11

%

 

6.9

 

12

%

 

19.4

 

11

%

 

18.4

 

11

%

Precision Coatings

3.3

 

15

%

 

3.5

 

15

%

 

9.3

 

14

%

 

9.1

 

13

%

Other

(7.1

)

 

 

(8.4

)

 

 

(20.5

)

 

 

(18.6

)

 

Total

$

21.2

 

11

%

 

$

18.7

 

10

%

 

$

65.3

 

11

%

 

$

47.8

 

9

%

The cost of gold, silver, platinum, palladium, and copper is passed through to customers and, therefore, the trends and comparisons of net sales are affected by movements in the market price of these metals. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales.

The Company’s pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company’s results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company’s intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals.

Attachment 5

Materion Corporation and Subsidiaries

Reconciliation of Non-GAAP Measures - Profitability

(Unaudited)

 

 

Third Quarter Ended

 

Nine Months Ended

(Millions except per share amounts)

September 27, 2019

 

September 28, 2018

 

September 27, 2019

 

September 28, 2018

GAAP as Reported

 

 

 

 

 

 

 

Net Sales

$

306.0

 

 

$

297.2

 

 

$

905.3

 

 

$

909.8

 

Operating profit

6.3

 

 

18.7

 

 

50.4

 

 

47.1

 

Net income

3.5

 

 

20.0

 

 

35.9

 

 

41.7

 

EPS - Diluted

$

0.17

 

 

$

0.97

 

 

$

1.74

 

 

$

2.02

 

 

 

 

 

 

 

 

 

Operating Profit Special Items

 

 

 

 

 

 

 

Impairment charges

$

14.1

 

 

$

 

 

$

14.1

 

 

$

 

Cost reduction initiatives

0.8

 

 

 

 

0.8

 

 

 

Legacy legal & environmental costs

 

 

 

 

 

 

0.7

 

Total Operating Profit Special Items

$

14.9

 

 

$

 

 

$

14.9

 

 

$

0.7

 

Operating Profit Special Items - net of tax

$

12.3

 

 

$

 

 

$

12.3

 

 

$

0.6

 

Other Non-Operating Expense Special Items - net of tax

$

 

 

$

 

 

$

2.6

 

 

$

 

Tax Special Item

$

1.0

 

 

$

(6.0

)

 

$

1.0

 

 

$

(6.6

)

 

 

 

 

 

 

 

 

Non-GAAP Measures - Adjusted Profitability

 

 

 

 

 

 

 

Value-added (VA) sales

$

188.6

 

 

$

181.9

 

 

$

571.2

 

 

$

553.1

 

Operating profit

21.2

 

 

18.7

 

 

65.3

 

 

47.8

 

Operating profit % of VA

11.2

%

 

10.3

%

 

11.4

%

 

8.6

%

Net income

16.8

 

 

14.0

 

 

51.8

 

 

35.7

 

EPS - Diluted

$

0.81

 

 

$

0.68

 

 

$

2.51

 

 

$

1.73

 

In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 4, we have adjusted the results for certain special items such as non-cash pension charges, legacy legal and environmental costs, cost reduction initiatives, non-cash impairment charges, and certain discrete income tax items from the applicable GAAP financial measure. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations.

Attachment 6

Materion Corporation and Subsidiaries

Value-added sales by Market

(Unaudited)

 

 

Third Quarter Ended

 

 

 

Nine Months Ended

 

 

(Millions)

September 27,
2019

 

September 28,
2018

 

%
Change

 

September 27,
2019

 

September 28,
2018

 

%
Change

Materion Corporation

 

 

 

 

 

 

 

 

 

 

 

Industrial

$

34.9

 

 

$

32.7

 

 

6.7

%

 

$

104.9

 

 

$

99.6

 

 

5.3

%

Semiconductor

34.3

 

36.2

 

(5.2

)%

 

108.4

 

113.6

 

(4.6

)%

Aerospace and Defense

32.1

 

24.1

 

33.2

%

 

92.2

 

75.0

 

22.9

%

Consumer Electronics

16.8

 

16.1

 

4.3

%

 

50.1

 

51.7

 

(3.1

)%

Energy

18.4

 

19.7

 

(6.6

)%

 

55.9

 

52.4

 

6.7

%

Telecom and Data Center

13.5

 

15.0

 

(10.0

)%

 

44.6

 

42.6

 

4.7

%

Automotive

14.2

 

21.2

 

(33.0

)%

 

46.1

 

59.9

 

(23.0

)%

Other

24.4

 

16.9

 

44.4

%

 

69.0

 

58.4

 

18.2

%

Total

$

188.6

 

 

$

181.9

 

 

3.7

%

 

$

571.2

 

 

$

553.2

 

 

3.3

%

Performance Alloy and Composites

 

 

 

 

 

 

 

 

 

 

 

Industrial

$

25.9

 

 

$

23.9

 

 

8.4

%

 

$

75.9

 

 

$

75.3

 

 

0.8

%

Semiconductor

1.2

 

1.4

 

(14.3

)%

 

4.3

 

3.7

 

16.2

%

Aerospace and Defense

26.0

 

18.4

 

41.3

%

 

75.3

 

58.7

 

28.3

%

Consumer Electronics

11.1

 

11.2

 

(0.9

)%

 

36.4

 

37.3

 

(2.4

)%

Energy

9.5

 

10.8

 

(12.0

)%

 

29.3

 

26.0

 

12.7

%

Telecom and Data Center

13.1

 

14.8

 

(11.5

)%

 

44.1

 

42.2

 

4.5

%

Automotive

12.1

 

19.1

 

(36.6

)%

 

40.3

 

53.7

 

(25.0

)%

Other

13.1

 

5.3

 

147.2

%

 

31.2

 

18.4

 

69.6

%

Total

$

112.0

 

 

$

104.9

 

 

6.8

%

 

$

336.8

 

 

$

315.3

 

 

6.8

%

Advanced Materials

 

 

 

 

 

 

 

 

 

 

 

Industrial

$

5.7

 

 

$

5.5

 

 

3.6

%

 

$

17.7

 

 

$

15.0

 

 

18.0

%

Semiconductor

33.1

 

34.5

 

(4.1

)%

 

103.9

 

108.7

 

(4.4

)%

Aerospace and Defense

0.7

 

0.5

 

40.0

%

 

1.9

 

1.5

 

26.7

%

Consumer Electronics

0.1

 

0.1

 

%

 

0.3

 

0.3

 

%

Energy

9.0

 

8.8

 

2.3

%

 

26.5

 

26.3

 

0.8

%

Telecom and Data Center

0.3

 

0.2

 

50.0

%

 

0.5

 

0.4

 

25.0

%

Automotive

1.9

 

1.7

 

11.8

%

 

4.9

 

5.1

 

(3.9

)%

Other

4.8

 

4.0

 

20.0

%

 

15.7

 

13.6

 

15.4

%

Total

$

55.6

 

 

$

55.3

 

 

0.5

%

 

$

171.4

 

 

$

170.9

 

 

0.3

%

Precision Coatings

 

 

 

 

 

 

 

 

 

 

 

Industrial

$

3.4

 

 

$

3.3

 

 

3.0

%

 

$

11.4

 

 

$

9.2

 

 

23.9

%

Semiconductor

 

0.3

 

%

 

0.2

 

1.2

 

(83.3

)%

Aerospace and Defense

5.3

 

5.2

 

1.9

%

 

14.9

 

14.8

 

0.7

%

Consumer Electronics

5.6

 

4.7

 

19.1

%

 

13.5

 

14.0

 

(3.6

)%

Energy

 

 

%

 

 

 

%

Telecom and Data Center

 

 

%

 

 

 

%

Automotive

0.3

 

0.4

 

(25.0

)%

 

0.9

 

1.1

 

(18.2

)%

Other

7.8

 

9.1

 

(14.3

)%

 

27.2

 

29.7

 

(8.4

)%

Total

$

22.4

 

 

$

23.0

 

 

(2.6

)%

 

$

68.1

 

 

$

70.0

 

 

(2.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

Eliminations

$

(1.4

)

 

$

(1.3

)

 

 

 

$

(5.1

)

 

$

(3.0

)

 

 

 

Source: Materion Corporation

Investor Contact:
Stephen F. Shamrock
(216) 383-4010
stephen.shamrock@materion.com

Media Contact:
John G. McCloskey
(216) 383-6835
john.mccloskey@materion.com

https://materion.com
Mayfield Hts-g