MAYFIELD HEIGHTS, Ohio, Apr 05, 2010 (BUSINESS WIRE) -- Brush Engineered Materials Inc. (NYSE:BW) today raised its estimates for
the first quarter of 2010 and its annual forecast due to stronger demand
and improving margins.
The Company expects sales for the first quarter to be in the range of
$300.0 million to $310.0 million and earnings to be above $0.25 per
share, diluted. This compares to the previously provided sales guidance
of $275.0 million to $295.0 million.
Included in the earnings estimate for the quarter is approximately $0.12
per share of charges related to unusual items. In addition to the $0.05
per share of previously announced charges, the Company also expects to
take a non-cash charge of $0.07 per share related to a change in the
value of the Company's deferred tax asset. This charge is due to the
change in the deductibility of Medicare Part D reimbursements of
Company-provided retiree prescription drug benefits. The change in
deductibility results from the new federal health care bill.
For the full year, the Company now expects sales to be in the range of
$1.2 billion to $1.3 billion, up approximately $100 million from the
previously announced range of $1.1 billion to $1.2 billion. Earnings for
the year are currently expected to be in the range of $1.15 to $1.40 per
share, diluted, an increase of $0.40 per share from the previously
provided range of $0.75 to $1.00 per share.
The significant improvement in expected earnings is due to increased
sales volume, favorable product mix, pricing and previously implemented
cost initiatives. Throughout the first quarter, the Company has
experienced stronger than anticipated demand across most of its key
markets. Demand has improved in the telecommunications infrastructure,
consumer electronics (especially handsets), data storage, automotive
electronics, optics, and more recently, in the oil and gas and aerospace
markets. This strength has continued into the second quarter.
While 2010 is off to a better-than-expected start, it is important to
continue to reiterate that the Company's outlook is subject to
significant variability, especially given the uncertainty about the
sustainability and quality of the global economic recovery. Changes in
demand levels, metal price changes, metal supply conditions, new product
qualification and ramp-up rates, swings in customer inventory levels,
changes in the financial health of key customers, acquisition-related
integration costs and other factors can have a significant effect on
actual results. The outlook provided above is based on the Company's
best estimates at this time and is subject to significant fluctuations
due to these as well as other factors.
CEO'S COMMENTS
Richard Hipple, Chairman, President and CEO, stated, "We are emerging
from this recession as a much stronger organization and are
well-positioned to take advantage of future opportunities across our
businesses. The current strength that we are seeing across our key
markets in combination with our efforts to reposition the Company and
focus on new technologies, markets, products and expanded geography has
accelerated our return to profitability. While we are encouraged with
our progress thus far in the year, we remain cautious regarding the
quality and sustainability of the continued global recovery, especially
in the second half as we believe that some of the current strength is
due to inventory builds."
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:
-
The global and domestic economies, including the uncertainties related
to the impact of the current global financial crisis;
-
The condition of the markets in which we serve, whether defined
geographically or by segment, with the major market segments being
telecommunications and computer, data storage, aerospace and defense,
automotive electronics, industrial components, appliance and medical;
-
Changes in product mix and the financial condition of customers;
-
Actual sales, operating rates and margins for the first quarter and
the year 2010;
-
The finalization of our financial statements for the first quarter
2010;
-
The successful implementation of cost reduction initiatives;
-
Our success in developing and introducing new products and new product
ramp-up rates, especially in the media market;
-
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 integrating newly acquired businesses, including the
acquisition of Barr Associates, Inc. and Academy Corporation;
-
The impact of the results of operations of Barr Associates, Inc. and
Academy Corporation on our ability to fully achieve the strategic and
financial objectives related to these acquisitions, including the
acquisitions being accretive to earnings in 2010;
-
Our success in implementing our strategic plans and the timely and
successful completion and start up of any capital projects, including
the new beryllium facility;
-
The availability of adequate lines of credit and the associated
interest rates;
-
Other financial factors, including the cost and availability of raw
materials (both base and precious metals), tax rates, exchange rates,
metal financing fees, pension costs and required cash contributions
and other employee benefit costs, energy costs, regulatory compliance
costs, the cost and availability of insurance, and the impact of the
Company's stock price on the cost of incentive compensation plans;
-
The uncertainties related to the impact of war and terrorist
activities;
-
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 set forth in Part I, Item 1A of the Company's Form
10-K for the year ended December 31, 2009.
Brush Engineered Materials Inc. 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.
SOURCE: Brush Engineered Materials Inc.
Brush Engineered Materials Inc.
Investors:
Michael C. Hasychak, 216-383-6823
or
Media:
Patrick S. Carpenter, 216-383-6835
or
http://www.beminc.com
Mayfield Hts-g
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