Announces New Stock Repurchase Authorization
MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--
Materion Corporation (NYSE:MTRN) today announced the following:
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The Company is revising its GAAP earnings range for 2013 to $1.05 to
$1.10 per share from $1.25 to $1.30 per share. The above includes
approximately $0.15 per share of costs related to the previously
announced facility and product line rationalizations. Excluding the
$0.15 per share of costs, earnings on an adjusted basis are expected
to be in the range of $1.20 to $1.25 per share.
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Earnings for 2014 are expected to be well above those for 2013 and in
the range of $1.75 to $1.95 per share.
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The Board of Directors has approved an authorization to repurchase up
to $50 million of the Company's common stock.
REVISED 2013 FORECAST
The aforementioned revision to the 2013 earnings range is due to delayed
shipments of high-margin defense and science product applications,
weaker than expected seasonal factors in consumer electronics, and lower
manufacturing yields early in the quarter in Performance Alloys.
2014 OUTLOOK
Entering 2014, orders are up approximately 9% when comparing to the
business levels that existed at the beginning of 2013. The facility
consolidations and product line rationalization initiatives of 2013 are
forecasted to provide up to a $0.30 per share benefit in 2014. This
benefit is expected to commence in the latter part of the first quarter
and will be fully realized at the beginning of the second quarter. The
new beryllium pebble plant is continuing to ramp up at a pace to meet
production requirements for 2014. The combination of the full benefit of
the cost initiatives, improved order entry, the pebble plant production
increase and the new product pipeline should result in a stronger second
quarter versus the first quarter of 2014 and a stronger second half
versus the first half of the year. Therefore, the earnings forecast for
2014 is in the range of $1.75 to $1.95 per share.
STOCK REPURCHASE AUTHORIZATION
The Board of Directors has approved an authorization to repurchase up to
$50 million of the Company's common stock. This authorization replaces
the previous repurchase authorization of one million shares, of which
approximately 600,000 shares were repurchased. The Company may utilize
various methods to effect the repurchases, which could include open
market repurchases, negotiated block transactions, accelerated share
repurchases or open market solicitations for shares, some of which may
be effected through Rule 10b5-1 plans. The timing of repurchases will
depend upon several factors, including market and business conditions,
and repurchases may be discontinued at any time.
CHAIRMAN'S COMMENTS
Richard Hipple, Chairman, President and CEO, stated, "While I'm
disappointed in our weaker than anticipated performance in the second
half of 2013, we have taken significant steps to reduce our cost
structure and position the Company for improved earnings momentum as we
enter 2014. The announcement of the new stock repurchase authorization
reinforces our confidence in the Company's earnings growth potential and
our ability to generate significant free cash flow. In 2014, we expect
to fund organic growth and pursue strategic initiatives while returning
cash back to our shareholders in the form of dividends and stock
repurchases."
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:
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Actual sales, operating rates and margins for 2013 and 2014;
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Uncertainties relating to the fourth quarter 2012 physical inventory
and possible theft at our Albuquerque facility, including (i) the
costs and outcome of our investigations and (ii) the timing and
amount, if any, of any insurance proceeds that we might receive;
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The global economy;
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The impact of any Federal Government shutdowns and sequestrations;
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The condition of the markets which we serve, whether defined
geographically or by segment, with the major market segments being:
consumer electronics, industrial components and commercial aerospace,
defense and science, automotive electronics, medical, energy and
telecommunications infrastructure;
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Changes in product mix and the financial condition of customers;
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Our success in developing and introducing new products and new product
ramp-up rates;
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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;
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Our success in integrating acquired businesses;
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Our success in moving the microelectronics packaging operations to
Singapore;
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Our success in completing the announced facility consolidations and
the product line rationalizations and achieving the expected benefits;
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Our success in implementing our strategic plans and the timely and
successful completion and start-up of any capital projects, including
the primary beryllium facility in Elmore, Ohio;
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The availability of adequate lines of credit and the associated
interest rates;
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The impact of the results of acquisitions on our ability to achieve
fully the strategic and financial objectives related to these
acquisitions;
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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;
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The uncertainties related to the impact of war, terrorist activities
and acts of God;
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Changes in government regulatory requirements and the enactment of new
legislation that impacts our obligations and operations;
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The conclusion of pending litigation matters in accordance with our
expectation that there will be no material adverse effects;
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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;
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The timing and amount of any repurchases of the Company's common
stock; and
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The risk factors set forth in Part 1, Item 1A of our Annual Report on
Form 10-K for the year ended December 31, 2012.
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
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Source: Materion Corporation
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