Ceramic Industry

Ceradyne Reports Third Quarter Sales of $148 Million

October 28, 2011

Ceradyne Inc. recently reported financial results for the third quarter and nine months ended September 30. Sales for the third quarter of 2011 were $148 million, compared with $91.8 million in the third quarter of 2010. Net income for the quarter increased to $20.4 million vs. $4.5 million in the third quarter 2010.

Sales for the nine months ended September 30 were $443.5 million, compared with $302.2 million in the same period last year. Net income for the nine month period was $63.1 million vs. net income of $16.1 million in the prior year period.

At this time, Ceradyne anticipates some top-line growth in 2012 with continued softness in solar crucibles early in 2012, firming as the year progresses. Due to a lack of visibility in certain areas (including the timing and probability of the enhanced combat helmet award, volume and margins related to solar crucibles, and other possible contracts) that are expected to be resolved within the next three or four months, Ceradyne will issue full guidance for 2012 when it reports year-end results in February.

Among the areas expected to grow in 2012 are Ceradyne's defense and industrial products lines. Although the following are not expected to make a material contribution to 2012 financial results, growth is also expected in recently introduced new products, such as PetroCeram® oil and gas ceramic sand screens, thrust bearings, and chemical and pharmaceutical micro reactors, which have had significant technical and field successes at the prototype level in 2011.

“We are pleased with our Q3 financial performance, particularly our new orders and backlog,” said Joel P. Moskowitz, president, CEO, and chairman of the board. “Our diversification strategy is resulting in continued growth and a ‘smoothing’ of performance. Diversity of products, markets and geography has resulted in our company relying on not one but three broad markets, namely defense, industrial, and energy-related advanced technical ceramics as we implement our five-year Ceradyne $1 billion goal. Our new products continue to demonstrate unusually superior performance in the field. We have now completed over 1 1/2 years of outstanding performance of our PetroCeram ceramic sand screens in the North Sea, and our patented ceramic thrust bearings for oil drilling have successfully completed tests, including horizontal drilling, in hostile environments. The development of new state-of-the-art technical ceramic products will remain a high Ceradyne priority with continued R&D support, particularly in our R&D centers in Kempten, Germany, and Costa Mesa, Calif.

For more information, visit www.ceradyne.com.