MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--
Materion Corporation (NYSE: MTRN) announced today that it has realigned
the way the business is organized.
REALIGNMENT OF BUSINESS GROUPS
The Company will be organized into three business groups: 1) Performance
Alloys and Composites group, which contains the metals businesses
including our beryllium businesses and Technical Materials; 2) Advanced
Materials group, which contains our businesses that produce high purity
materials primarily used in physical vapor deposition applications; and
3) Precision Coatings group, which contains our businesses that provide
both optical coatings and large area coating products.
BUSINESS SEGMENT REPORTING
Based on the changes in the way the Company is being managed, Materion
will externally report three segments: 1) Performance Alloys and
Composites, 2) Advanced Materials and 3) Other. The historical segment
financial information has been recast to reflect the new reporting
structure and is included as an attachment to this press release.
Comparing the new reporting segments to the previous reporting segments
of Materion, the former Performance Alloys, Beryllium and Composites,
and Technical Materials segments are combined under the new Performance
Alloys and Composites segment. The former Advanced Materials and
Technologies segment has been separated into the Advanced Materials
segment and the Precision Coatings group. The Precision Coatings group,
which includes the Precision Optics and Large Area Coatings businesses,
is now included in the Other segment, in addition to corporate costs not
charged to the Operating Units.
CHAIRMAN'S COMMENTS
Commenting on the realignment, Materion Chairman, President and Chief
Executive Officer Richard J. Hipple, said, "Materion revised its
operating business group structure to ensure alignment with how we
manage our assets and leverage our extensive manufacturing,
distribution, product development, and customer service capabilities.
Organizing the businesses within these three groups will allow Materion
to more appropriately focus our resources to drive growth across our
diversified customer base, while bringing better clarity to our
investors."
BUSINESS GROUP AND OPERATING UNIT DESCRIPTIONS
These three business groups are comprised of five separate operating
units independently managed by highly skilled and experienced business
leaders.
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Materion Corporation |
External Reportable Segments
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Performance Alloys and Composites
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Advanced Materials
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Other
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Business Groups
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Performance Alloys and Composites
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Advanced Materials
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Precision Coatings
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Corporate Costs
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Operating Units
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Performance Metals
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Technical Materials
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Advanced Materials
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Precision Optics
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Large Area Coatings
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A description of the five operating units follows:
Performance Metals produces strip and bulk form alloy products,
beryllium-based metals, beryllium and aluminum metal matrix composites,
beryllia ceramics and bulk metallic glass materials at manufacturing
facilities in the United States. The segment has service and
distribution centers in the United States, Europe, and Asia. The segment
also operates the world's largest bertrandite ore mine and refinery in
Utah, providing feedstock hydroxide for our beryllium business and for
external sale. Glenn Maxwell is the President of this business.
Technical Materialsproduces strip metal products with clad inlay
and overlay metals, including precious and base metals electro-plated
systems. Under the leadership of Al Lubrano, President, the business has
its manufacturing facility in Lincoln, Rhode Island and shares service
and distribution centers with Performance Metals in Europe and Asia.
Advanced Materials produces advanced chemicals, microelectronic
packaging, precious and non-precious metals, and provides deposition
reclamation and refining services. Based in Mayfield Heights, Ohio and
under the leadership of Don Klimkowicz, President, Advanced Materials
has manufacturing facilities in the United States, Europe and Asia.
Precision Optics produces precision sputter-coated thin films and
optical filter materials. Based in Westford, Massachusetts, the group
has manufacturing facilities in the United States and China. Robert
Naranjo is the President of this business.
Large Area Coatings produces sputter-coated and
precision-converted thin film materials. Based in Windsor, Connecticut,
under the leadership of Ian Tribick, President, the business
manufactures and distributes coated material primarily for medical
testing and diagnosis applications.
Corporate Costs include corporate functions and central shared services
net of the portion charged to the Operating Units. The portion charged
to the Operating Units is intended to reflect the portion of the shared
services consumed by the business but managed centrally.
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. 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 sales, operating rates and margins for 2015;
-
The global economy;
-
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:
consumer electronics, industrial components, commercial aerospace,
defense, science, automotive electronics, medical, energy, and
telecommunications infrastructure;
-
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 integrating acquired businesses;
-
The impact of the results of acquisitions on our ability to achieve
fully 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, including
the beryllium pebble facility in Elmore, Ohio;
-
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), 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 success of the realignment of our 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, 2013.
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.
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Materion Corporation
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Reconciliation of Non-GAAP Measure - Segment Reporting Information
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(Unaudited)
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(In millions except per share amounts)
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Quarter Ended
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Quarter Ended
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Quarter Ended
|
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Mar. 30,
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Jun. 29,
|
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Sep. 28,
|
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Dec. 31,
|
|
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Mar. 29,
|
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Jun. 28,
|
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Sep. 27,
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Dec. 31,
|
|
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Mar. 28,
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Jun. 27,
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Sep. 26,
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2012
|
|
2012
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|
2012
|
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2012
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2013
|
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2013
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2013
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2013
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|
|
2014
|
|
2014
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|
2014
|
External Sales
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|
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|
|
|
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|
|
|
|
|
|
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|
|
|
|
|
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PAC
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|
$
|
112.1
|
|
|
$
|
103.2
|
|
|
$
|
100.4
|
|
|
$
|
108.7
|
|
|
|
$
|
106.4
|
|
|
$
|
109.5
|
|
|
$
|
98.7
|
|
|
$
|
108.4
|
|
|
|
$
|
97.2
|
|
|
$
|
109.6
|
|
|
$
|
114.2
|
|
|
AM
|
|
|
205.0
|
|
|
|
183.7
|
|
|
|
151.8
|
|
|
|
154.3
|
|
|
|
|
156.4
|
|
|
|
160.4
|
|
|
|
134.5
|
|
|
|
140.7
|
|
|
|
|
129.3
|
|
|
|
145.0
|
|
|
|
137.6
|
|
|
PC
|
|
|
36.8
|
|
|
|
38.3
|
|
|
|
38.7
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|
|
|
39.2
|
|
|
|
|
37.5
|
|
|
|
35.6
|
|
|
|
41.8
|
|
|
|
37.4
|
|
|
|
|
33.9
|
|
|
|
34.1
|
|
|
|
39.9
|
|
|
Corporate
|
|
|
(0.3
|
)
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
1.6
|
|
|
|
|
(1.1
|
)
|
|
|
0.6
|
|
|
|
0.4
|
|
|
|
(0.4
|
)
|
|
|
|
(1.5
|
)
|
|
|
(0.7
|
)
|
|
|
(0.1
|
)
|
|
Other
|
|
|
36.5
|
|
|
|
38.2
|
|
|
|
38.4
|
|
|
|
40.8
|
|
|
|
|
36.4
|
|
|
|
36.2
|
|
|
|
42.2
|
|
|
|
37.0
|
|
|
|
|
32.4
|
|
|
|
33.4
|
|
|
|
39.8
|
|
|
Total
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|
$
|
353.6
|
|
|
$
|
325.1
|
|
|
$
|
290.6
|
|
|
$
|
303.8
|
|
|
|
$
|
299.2
|
|
|
$
|
306.1
|
|
|
$
|
275.4
|
|
|
$
|
286.1
|
|
|
|
$
|
258.9
|
|
|
$
|
288.0
|
|
|
$
|
291.6
|
|
|
|
|
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|
|
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|
|
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|
|
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|
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Pass-Through Metal Cost
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|
PAC
|
|
$
|
24.3
|
|
|
$
|
22.2
|
|
|
$
|
21.4
|
|
|
$
|
19.5
|
|
|
|
$
|
22.6
|
|
|
$
|
22.7
|
|
|
$
|
18.8
|
|
|
$
|
19.0
|
|
|
|
$
|
17.2
|
|
|
$
|
19.7
|
|
|
$
|
19.5
|
|
|
AM
|
|
|
162.0
|
|
|
|
138.0
|
|
|
|
105.2
|
|
|
|
117.5
|
|
|
|
|
113.3
|
|
|
|
119.6
|
|
|
|
92.9
|
|
|
|
97.7
|
|
|
|
|
87.6
|
|
|
|
100.0
|
|
|
|
91.5
|
|
|
PC
|
|
|
10.3
|
|
|
|
10.5
|
|
|
|
12.0
|
|
|
|
13.8
|
|
|
|
|
11.3
|
|
|
|
10.5
|
|
|
|
14.7
|
|
|
|
11.5
|
|
|
|
|
10.0
|
|
|
|
9.2
|
|
|
|
12.9
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|
|
Corporate
|
|
|
(0.4
|
)
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
1.6
|
|
|
|
|
0.7
|
|
|
|
0.8
|
|
|
|
0.9
|
|
|
|
0.7
|
|
|
|
|
(0.8
|
)
|
|
|
(0.5
|
)
|
|
|
2.1
|
|
|
Other
|
|
|
9.9
|
|
|
|
10.4
|
|
|
|
11.7
|
|
|
|
15.4
|
|
|
|
|
12.0
|
|
|
|
11.3
|
|
|
|
15.6
|
|
|
|
12.2
|
|
|
|
|
9.2
|
|
|
|
8.7
|
|
|
|
15.0
|
|
|
Total
|
|
$
|
196.2
|
|
|
$
|
170.6
|
|
|
$
|
138.3
|
|
|
$
|
152.4
|
|
|
|
$
|
147.9
|
|
|
$
|
153.6
|
|
|
$
|
127.3
|
|
|
$
|
128.9
|
|
|
|
$
|
114.0
|
|
|
$
|
128.4
|
|
|
$
|
126.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valued-Added Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAC
|
|
$
|
87.8
|
|
|
$
|
81.0
|
|
|
$
|
79.0
|
|
|
$
|
89.2
|
|
|
|
$
|
83.8
|
|
|
$
|
86.8
|
|
|
$
|
79.9
|
|
|
$
|
89.4
|
|
|
|
$
|
80.0
|
|
|
$
|
89.9
|
|
|
$
|
94.7
|
|
|
AM
|
|
|
43.0
|
|
|
|
45.7
|
|
|
|
46.6
|
|
|
|
36.8
|
|
|
|
|
43.1
|
|
|
|
40.8
|
|
|
|
41.6
|
|
|
|
43.0
|
|
|
|
|
41.7
|
|
|
|
45.0
|
|
|
|
46.1
|
|
|
PC
|
|
|
26.5
|
|
|
|
27.8
|
|
|
|
26.7
|
|
|
|
25.4
|
|
|
|
|
26.2
|
|
|
|
25.1
|
|
|
|
27.1
|
|
|
|
25.9
|
|
|
|
|
23.9
|
|
|
|
24.9
|
|
|
|
27.0
|
|
|
Corporate
|
|
|
0.1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(1.8
|
)
|
|
|
(0.2
|
)
|
|
|
(0.5
|
)
|
|
|
(1.1
|
)
|
|
|
|
(0.7
|
)
|
|
|
(0.2
|
)
|
|
|
(2.2
|
)
|
|
Other
|
|
|
26.6
|
|
|
|
27.8
|
|
|
|
26.7
|
|
|
|
25.4
|
|
|
|
|
24.4
|
|
|
|
24.9
|
|
|
|
26.6
|
|
|
|
24.8
|
|
|
|
|
23.2
|
|
|
|
24.7
|
|
|
|
24.8
|
|
|
Total
|
|
$
|
157.4
|
|
|
$
|
154.5
|
|
|
$
|
152.3
|
|
|
$
|
151.4
|
|
|
|
$
|
151.3
|
|
|
$
|
152.5
|
|
|
$
|
148.1
|
|
|
$
|
157.2
|
|
|
|
$
|
144.9
|
|
|
$
|
159.6
|
|
|
$
|
165.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin % of Value-Added
|
|
PAC
|
|
|
27
|
%
|
|
|
30
|
%
|
|
|
29
|
%
|
|
|
28
|
%
|
|
|
|
28
|
%
|
|
|
31
|
%
|
|
|
25
|
%
|
|
|
27
|
%
|
|
|
|
28
|
%
|
|
|
27
|
%
|
|
|
28
|
%
|
|
AM
|
|
|
43
|
%
|
|
|
45
|
%
|
|
|
44
|
%
|
|
|
32
|
%
|
|
|
|
37
|
%
|
|
|
28
|
%
|
|
|
37
|
%
|
|
|
40
|
%
|
|
|
|
39
|
%
|
|
|
39
|
%
|
|
|
42
|
%
|
|
PC
|
|
|
28
|
%
|
|
|
33
|
%
|
|
|
35
|
%
|
|
|
26
|
%
|
|
|
|
34
|
%
|
|
|
31
|
%
|
|
|
35
|
%
|
|
|
29
|
%
|
|
|
|
30
|
%
|
|
|
31
|
%
|
|
|
33
|
%
|
|
Corporate
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
Other
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
Total
|
|
|
31
|
%
|
|
|
35
|
%
|
|
|
34
|
%
|
|
|
29
|
%
|
|
|
|
32
|
%
|
|
|
30
|
%
|
|
|
30
|
%
|
|
|
31
|
%
|
|
|
|
31
|
%
|
|
|
31
|
%
|
|
|
33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
|
|
PAC
|
|
$
|
7.2
|
|
|
$
|
7.3
|
|
|
$
|
6.7
|
|
|
$
|
8.1
|
|
|
|
$
|
8.4
|
|
|
$
|
11.0
|
|
|
$
|
3.3
|
|
|
$
|
8.1
|
|
|
|
$
|
6.2
|
|
|
$
|
6.3
|
|
|
$
|
10.8
|
|
|
AM
|
|
|
6.5
|
|
|
|
7.3
|
|
|
|
8.8
|
|
|
|
(0.8
|
)
|
|
|
|
3.6
|
|
|
|
(1.0
|
)
|
|
|
3.5
|
|
|
|
2.3
|
|
|
|
|
5.1
|
|
|
|
12.5
|
|
|
|
7.8
|
|
|
PC
|
|
|
0.1
|
|
|
|
1.9
|
|
|
|
2.1
|
|
|
|
(2.3
|
)
|
|
|
|
1.5
|
|
|
|
0.7
|
|
|
|
2.4
|
|
|
|
(0.4
|
)
|
|
|
|
4.1
|
|
|
|
0.5
|
|
|
|
2.1
|
|
|
Corporate
|
|
|
(3.9
|
)
|
|
|
(4.1
|
)
|
|
|
(4.2
|
)
|
|
|
(3.9
|
)
|
|
|
|
(4.0
|
)
|
|
|
(4.1
|
)
|
|
|
(3.9
|
)
|
|
|
(4.6
|
)
|
|
|
|
(4.3
|
)
|
|
|
(4.8
|
)
|
|
|
(3.3
|
)
|
|
Other
|
|
|
(3.8
|
)
|
|
|
(2.2
|
)
|
|
|
(2.1
|
)
|
|
|
(6.2
|
)
|
|
|
|
(2.5
|
)
|
|
|
(3.4
|
)
|
|
|
(1.5
|
)
|
|
|
(5.0
|
)
|
|
|
|
(0.2
|
)
|
|
|
(4.3
|
)
|
|
|
(1.2
|
)
|
|
Total
|
|
$
|
9.9
|
|
|
$
|
12.4
|
|
|
$
|
13.4
|
|
|
$
|
1.1
|
|
|
|
$
|
9.5
|
|
|
$
|
6.6
|
|
|
$
|
5.3
|
|
|
$
|
5.4
|
|
|
|
$
|
11.1
|
|
|
$
|
14.5
|
|
|
$
|
17.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special Items
|
|
PAC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AM
|
|
|
|
|
|
|
|
$
|
7.4
|
|
|
|
|
|
|
|
|
|
$
|
2.8
|
|
|
|
$
|
0.4
|
|
|
$
|
(5.4
|
)
|
|
|
|
PC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.6
|
|
|
|
|
(2.6
|
)
|
|
|
0.1
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.5
|
|
|
|
|
0.2
|
|
|
|
1.5
|
|
|
|
(2.7
|
)
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.1
|
|
|
|
|
(2.4
|
)
|
|
|
1.6
|
|
|
|
(2.7
|
)
|
|
Total
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
7.4
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
4.9
|
|
|
|
$
|
(2.0
|
)
|
|
$
|
(3.8
|
)
|
|
$
|
(2.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Ex Spec Items
|
|
PAC
|
|
|
7.2
|
|
|
|
7.3
|
|
|
|
6.7
|
|
|
|
8.1
|
|
|
|
|
8.4
|
|
|
|
11.0
|
|
|
|
3.3
|
|
|
|
8.1
|
|
|
|
|
6.2
|
|
|
|
6.3
|
|
|
|
10.8
|
|
|
AM
|
|
|
6.5
|
|
|
|
7.3
|
|
|
|
8.8
|
|
|
|
6.6
|
|
|
|
|
3.6
|
|
|
|
(1.0
|
)
|
|
|
3.5
|
|
|
|
5.1
|
|
|
|
|
5.5
|
|
|
|
7.1
|
|
|
|
7.8
|
|
|
PC
|
|
|
0.1
|
|
|
|
1.9
|
|
|
|
2.1
|
|
|
|
(2.3
|
)
|
|
|
|
1.5
|
|
|
|
0.7
|
|
|
|
2.4
|
|
|
|
1.2
|
|
|
|
|
1.5
|
|
|
|
0.6
|
|
|
|
2.1
|
|
|
Corporate
|
|
|
(3.9
|
)
|
|
|
(4.1
|
)
|
|
|
(4.2
|
)
|
|
|
(3.9
|
)
|
|
|
|
(4.0
|
)
|
|
|
(4.1
|
)
|
|
|
(3.9
|
)
|
|
|
(4.1
|
)
|
|
|
|
(4.1
|
)
|
|
|
(3.3
|
)
|
|
|
(6.0
|
)
|
|
Other
|
|
|
(3.8
|
)
|
|
|
(2.2
|
)
|
|
|
(2.1
|
)
|
|
|
(6.2
|
)
|
|
|
|
(2.5
|
)
|
|
|
(3.4
|
)
|
|
|
(1.5
|
)
|
|
|
(2.9
|
)
|
|
|
|
(2.6
|
)
|
|
|
(2.7
|
)
|
|
|
(3.9
|
)
|
|
Total
|
|
$
|
9.9
|
|
|
$
|
12.4
|
|
|
$
|
13.4
|
|
|
$
|
8.5
|
|
|
|
$
|
9.5
|
|
|
$
|
6.6
|
|
|
$
|
5.3
|
|
|
$
|
10.3
|
|
|
|
$
|
9.1
|
|
|
$
|
10.7
|
|
|
$
|
14.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Ex Spec Items % of Value-Added
|
|
PAC
|
|
|
8.2
|
%
|
|
|
9.0
|
%
|
|
|
8.5
|
%
|
|
|
9.1
|
%
|
|
|
|
10.0
|
%
|
|
|
12.7
|
%
|
|
|
4.1
|
%
|
|
|
9.1
|
%
|
|
|
|
7.8
|
%
|
|
|
7.0
|
%
|
|
|
11.4
|
%
|
|
AM
|
|
|
15.1
|
%
|
|
|
16.0
|
%
|
|
|
18.9
|
%
|
|
|
17.9
|
%
|
|
|
|
8.4
|
%
|
|
|
-2.5
|
%
|
|
|
8.4
|
%
|
|
|
11.9
|
%
|
|
|
|
13.2
|
%
|
|
|
15.8
|
%
|
|
|
16.9
|
%
|
|
PC
|
|
|
0.4
|
%
|
|
|
6.8
|
%
|
|
|
7.9
|
%
|
|
|
-9.1
|
%
|
|
|
|
5.7
|
%
|
|
|
2.8
|
%
|
|
|
8.9
|
%
|
|
|
4.6
|
%
|
|
|
|
6.3
|
%
|
|
|
2.4
|
%
|
|
|
7.8
|
%
|
|
Corporate
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
Other
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
|
N/M
|
|
|
Total
|
|
|
6.3
|
%
|
|
|
8.0
|
%
|
|
|
8.8
|
%
|
|
|
5.6
|
%
|
|
|
|
6.3
|
%
|
|
|
4.3
|
%
|
|
|
3.6
|
%
|
|
|
6.6
|
%
|
|
|
|
6.3
|
%
|
|
|
6.7
|
%
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS Diluted (GAAP)
|
|
$
|
0.30
|
|
|
$
|
0.38
|
|
|
$
|
0.39
|
|
|
$
|
0.12
|
|
|
|
$
|
0.33
|
|
|
$
|
0.20
|
|
|
$
|
0.24
|
|
|
$
|
0.18
|
|
|
|
$
|
0.35
|
|
|
$
|
0.47
|
|
|
$
|
0.60
|
|
EPS Ex Spec Items Diluted
|
|
$
|
0.30
|
|
|
$
|
0.38
|
|
|
$
|
0.39
|
|
|
$
|
0.35
|
|
|
|
$
|
0.33
|
|
|
$
|
0.20
|
|
|
$
|
0.24
|
|
|
$
|
0.34
|
|
|
|
$
|
0.29
|
|
|
$
|
0.36
|
|
|
$
|
0.51
|
|
The cost of gold, silver, platinum, palladium and copper is passed
through to customers and therefore the trends and comparisons of sales
are affected by movements in the market price of these metals.
Internally, management reviews sales and value-added sales. Value-added
sales is a non-GAAP measure that deducts the value of the pass-through
metals sold from sales. Value-added sales allows management to assess
the impact of differences in 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 their costs are not deducted
from 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.
|
|
|
|
|
|
|
|
|
|
|
|
Materion Corporation
|
Reconciliation of Non-GAAP Measure - Profitability
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
(In millions except per share amounts)
|
|
|
Dec. 31, 2012
|
|
Dec. 31, 2013
|
|
March 28, 2014
|
|
June 27, 2014
|
|
Sept. 26, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as Reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$
|
303.8
|
|
|
$
|
286.1
|
|
|
$
|
258.9
|
|
|
$
|
288.0
|
|
|
$
|
291.6
|
|
|
|
Gross margin
|
|
|
|
44.0
|
|
|
|
49.2
|
|
|
|
45.5
|
|
|
|
49.8
|
|
|
|
54.8
|
|
|
|
Operating profit
|
|
|
|
1.1
|
|
|
|
5.4
|
|
|
|
11.1
|
|
|
|
14.5
|
|
|
|
17.4
|
|
|
|
Net income
|
|
|
|
2.5
|
|
|
|
3.8
|
|
|
|
7.3
|
|
|
|
10.0
|
|
|
|
12.4
|
|
|
|
EPS - Diluted
|
|
|
$
|
0.12
|
|
|
$
|
0.18
|
|
|
$
|
0.35
|
|
|
$
|
0.47
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Theft, Facility closure and reorganization costs (benefits)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
$
|
7.4
|
|
|
$
|
1.3
|
|
|
$
|
0.2
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Selling, general and administrative
|
|
|
|
|
|
2.3
|
|
|
|
0.5
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
Other-net
|
|
|
|
-
|
|
|
|
1.4
|
|
|
|
(2.6
|
)
|
|
|
-
|
|
|
|
-
|
|
Recovery from insurance and other litigation, net of expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.9
|
|
|
|
1.0
|
|
|
|
Other-net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6.8
|
)
|
|
|
(4.0
|
)
|
|
Total Special items
|
|
|
$
|
7.4
|
|
|
$
|
4.9
|
|
|
$
|
(2.0
|
)
|
|
$
|
(3.8
|
)
|
|
$
|
(2.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items - net of tax
|
|
|
$
|
4.8
|
|
|
$
|
3.4
|
|
|
$
|
(1.3
|
)
|
|
$
|
(2.5
|
)
|
|
$
|
(1.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures - Adjusted Profitability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value-added (VA) sales
|
|
|
$
|
151.4
|
|
|
$
|
157.2
|
|
|
$
|
144.9
|
|
|
$
|
159.6
|
|
|
$
|
165.6
|
|
|
|
Gross margin
|
|
|
|
51.4
|
|
|
|
50.5
|
|
|
|
45.7
|
|
|
|
49.8
|
|
|
|
54.8
|
|
|
|
Gross margin % of VA
|
|
|
|
33.9
|
%
|
|
|
32.1
|
%
|
|
|
31.5
|
%
|
|
|
31.2
|
%
|
|
|
33.1
|
%
|
|
|
Operating profit
|
|
|
|
8.5
|
|
|
|
10.3
|
|
|
|
9.1
|
|
|
|
10.7
|
|
|
|
14.7
|
|
|
|
Operating profit % of VA
|
|
|
|
5.6
|
%
|
|
|
6.6
|
%
|
|
|
6.3
|
%
|
|
|
6.7
|
%
|
|
|
8.9
|
%
|
|
|
Net income
|
|
|
|
7.3
|
|
|
|
7.1
|
|
|
|
6.0
|
|
|
|
7.5
|
|
|
|
10.7
|
|
|
|
EPS - Diluted
|
|
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.29
|
|
|
$
|
0.36
|
|
|
$
|
0.51
|
|
In addition to presenting financial statements prepared in accordance
with U.S. generally accepted accounting principles (GAAP), this press
release contains financial measures, including gross margin, operating
profit, net income and earnings per share, on a non-GAAP basis. As
detailed in the above reconciliation, we have adjusted out the cost
(benefit) impact of the plant consolidation and product line
rationalization efforts and the net recovery from insurance and other
litigation claims in our Other segment from the applicable GAAP measure.
Internally, management reviews the results of operations without the
impact of these items 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.

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
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