Ceradyne Reports First Quarter Results
Ceradyne Inc. recently reported results for the first quarter ended March 31, 2001. Sales for the quarter reached a record $11.9 million, a 7% increase from $11.1 million in the first quarter of 2000. Net income was $1,189,000, or 14 cents per share diluted and basic, compared with net income of $1,156,000, or 14 cents per share diluted and basic, in the first quarter of 2000. The tax provision for the quarter ended March 31, 2001, for the combined federal and state tax rate was 30%, compared with 2% in the year-ago quarter. Income before provision for taxes rose 44% to a record $1,699,000 from $1,179,000 in the first quarter 2000. New bookings for the quarter also increased, rising 11% to $11.7 million from $10.5 million in 2000. Order backlog on March 31, 2001, was $26.4 million, 16% higher than the prior-year backlog of $22.7 million.
Ceradyne Chief Executive Officer Joel P. Moskowitz commented that the increase in before-tax income was due to stronger gross and operating margins, the result primarily of improving cost efficiencies related to increased production and shipment volumes, and a more favorable product mix. Moskowitz also said that the company has embarked on an ambitious expansion program at its Advanced Ceramic Operations in Costa Mesa. The $2.5 million expansion will substantially increase production capacity to meet anticipated growth in demand for lightweight ceramic armor, diesel and automobile ceramic engine components, ceramic orthodontic brackets, and other precision-machined advanced technical ceramics.
Additional information about the company can be found at http://www.ceradyne.com.