MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--
Materion (NYSE:MTRN) today announced plans to consolidate the
manufacturing operations of certain of its businesses along with the
related cost and expected net income benefit.
The Company's facility in the Czech Republic will be shut down and its
business consolidated into an existing related facility in Ireland. The
Company has also announced plans to close its Buellton, California
optical coatings facility and consolidate production with operations at
Company locations in Westford, Massachusetts and Shanghai, China. In
addition, the Company also plans to consolidate operations in its
Albuquerque, New Mexico Advanced Materials business from four facilities
to two.
The consolidation of these facilities will allow for improved operating
efficiency, cost savings and the ability to service the market more
effectively. Costs related to these facility consolidations are expected
to negatively impact earnings in the fourth quarter of the year by
approximately $0.10 per share. An additional $0.10 per share is expected
to be incurred in 2013. When combined with the already announced closure
and consolidation of its Newburyport, Massachusetts operations and other
actions taken at its Shanghai, China facility, the costs and benefits
are expected to be neutral to 2013 and favorably impact earnings by
approximately $0.20 per share in 2014.
The global macroeconomic environment continues to remain uncertain and
visibility is short. Order entry continues to be choppy. Taking this, as
well as the effect of the above-mentioned charges, into consideration,
the Company now expects earnings for 2012 to be in the range of $1.30 to
$1.35 per share versus the previously announced range of $1.40 to $1.45
per share.
CHAIRMAN'S COMMENTS
Richard J. Hipple, Chairman, President and CEO, stated, "Manufacturing
improvements, coupled with our more recent acquisitions, have given us
the opportunity to consolidate operations, and therefore reduce costs
and service our global customer base more effectively. The actions
announced today will position the Company to operate more efficiently
and generate higher future earnings."
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 economy;
-
The condition of the markets which we serve, whether defined
geographically or by segment, with the major market segments being:
consumer electronics, industrial and commercial aerospace, defense and
science, energy, medical, automotive electronics, telecommunications
infrastructure and appliance;
-
The actual costs in connection with the facility consolidation, which
could vary based on a number of factors, including the timing of such
considerations;
-
Changes in product mix and the financial condition of customers;
-
Actual sales, operating rates and margins for 2012;
-
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 integrating acquired businesses, including EIS Optics
Limited and Aerospace Metal Composites Limited;
-
Our success in moving the microelectronics packaging operations to
Singapore;
-
Our success in implementing our strategic plans and the timely and
successful completion and start-up of any capital projects, including
the new primary beryllium facility in Elmore, Ohio;
-
The availability of adequate lines of credit and the associated
interest rates;
-
The impact of the results of acquisitions on our ability to achieve
fully the strategic and financial objectives related to these
acquisitions;
-
Other financial factors, including the cost and availability of raw
materials (both base and precious metals), physical inventory
valuations, metal financing fees, tax rates, exchange rates, 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, 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;
-
The timing and ability to achieve further efficiencies and synergies
resulting from our name change and product line alignment under the
Materion name and Materion brand;
-
Our success in consolidating manufacturing operations within certain
businesses; and
-
The risk factors set forth in Part 1, Item 1A of our Annual Report on
Form 10-K for the year ended December 31, 2011.
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.
Materion Corporation
Investor Contact:
Michael
C. Hasychak, 216-383-6823
mike.hasychak@materion.com
or
Media
Contact:
Patrick S. Carpenter, 216-383-6835
patrick.carpenter@materion.com
or
http://www.materion.com
Mayfield
Hts-g
Source: Materion Corporation
News Provided by Acquire Media