Press Release Details

View all news

Brush Engineered Materials Inc. Updates Outlook


CLEVELAND, Jun 16, 2004 (BUSINESS WIRE) -- Brush Engineered Materials Inc. (NYSE:BW) today announced that sales growth for the second quarter of 2004 is now expected to approach the high end of the previously announced range of a 15-25% increase compared to the second quarter of 2003. Sales in the second quarter of 2004 are expected to be approximately $124.0 to $127.0 million compared to sales of $101.8 million in the second quarter of 2003. Assuming these expectations are met, the second quarter will be the sixth consecutive quarter of year-over-year sales growth and the third consecutive quarter where growth has been approximately 20% or above. In the fourth quarter of 2003, sales grew 19% and in the first quarter of 2004 sales grew 26%. This strong growth is being driven by improved global market conditions and on-going strength in the Company's key end-use markets. The primary markets exhibiting the improving conditions and strength include telecommunications and computer, automotive, optical media and data storage.

Assuming that sales, operating conditions, currency, the trading price of our shares and interest rates remain at current levels for the balance of the quarter, earnings per share would be between $0.35 and $0.40 for the quarter. In contrast to the first quarter of 2004, earnings are also benefiting from a positive movement in the value of the stock based compensation plan and the fair value of an interest rate swap.

Although the Company's order entry lead times remain short making it difficult to accurately project sales and earnings levels, based on current trends it is anticipated that the strong year over year quarterly sales growth will continue through the third quarter of 2004. While the third quarter will be affected by the usual seasonal factors, including the customary maintenance shutdowns and lower demand from customers, based on current trends it is expected that the third quarter 2004 sales will also be in the range of 15-25% ahead of the prior year's third quarter.


Commenting on the announcement, Gordon D. Harnett, President, Chairman and CEO, stated "I am very pleased with the strong sales growth we've seen thus far in 2004 and encouraged about the outlook for continued strong growth. Our new product introductions, along with our efforts to enter new markets as well as increase our presence in the rapidly growing regions of the world, have positioned us well to take advantage of the improving global economy. We're also continuing to benefit from our cost reduction and operating improvement initiatives. I'm looking forward to continued progress throughout 2004."


Portions of the content set forth in this document that are not statements of historical or current facts are forward-looking statements. The Company's actual future performance, including performance in the near term, 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:

    --  The condition of the markets which the Company serves, whether
        defined geographically or by market, with the major markets
        being telecommunications and computer, optical media,
        automotive electronics, industrial components, aerospace and
        defense and appliance.

    --  Actual sales, operating rates and margins in the second
        quarter 2004 and for the full year of 2004.

    --  Changes in product mix.

    --  The financial condition of particular customers.

    --  The Company's success in implementing its strategic plans and
        the timely and successful completion of any capital expansion

    --  Other factors, including, interest rates, exchange rates,
        trading price of our shares, tax rates, pension costs, energy
        costs, raw material costs and the cost and availability of

    --  Changes in government regulatory requirements and the
        enactment of any new legislation that impacts the Company's

    --  The conclusion of pending litigation matters in accordance
        with the Company's expectation that there will be no material
        adverse effects.

    --  Additional risk factors that may affect the Company's results
        are identified under the caption "Risk Factors" in the S-3
        Registration Statement of the Company originally filed with
        the Securities and Exchange Commission on April 2, 2004, as

Brush Engineered Materials Inc. is headquartered in Cleveland, Ohio. The Company, through its wholly-owned subsidiaries, supplies worldwide markets with beryllium products, alloy products, electronic products, precious metal products, and engineered material systems.

SOURCE: Brush Engineered Materials Inc.

Brush Engineered Materials Inc.
Investors: Michael C. Hasychak, 216/383-6823
Media: Patrick S. Carpenter, 216/383-6835
Customize your Business Wire news & multimedia to match your needs.
Get breaking news from companies and organizations worldwide.
Logon for FREE today at

Copyright (C) 2004 Business Wire. All rights reserved.

News Provided by COMTEX

Multimedia Files:

View all news