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[March 2005]
Record Sales for Ceradyne
Ceradyne Inc (Costa Mesa, CA, USA) said that sales for the fourth quarter of 2004 increased by 151.6% to a record US$83.4 million, up from US$33.1 million in the fourth quarter of 2003. Net income for Q4 2004 increased by 108.7% to a record US$8.8 million. Fourth quarter net income included a US$1.4 million after-tax expense incurred in connection with the acquisition of ESK Ceramics, which related primarily to the amortisation of the backlog and expensing the step-up of the inventory acquired. Operations of ESK Ceramics have been consolidated since 1 September 2004 and contributed US$27.3 million to Q4 2004 sales.
Gross profit margin increased to 31.3% of net sales in Q4 2004 from 30.1% of net sales in Q4 2003. The acquisition related expenses impacted the gross profit margin for Q4 2004 by 2.6% of net sales. The provision for income taxes was 34.4% in Q4 2004 compared to 35% in Q4 2003.
President and CEO Joel Moskowitz said: "The fourth quarter 2004 is the first full quarter of incorporating the Ceradyne acquisition of ESK Ceramics (Kempten, Germany) into our financial statements. We are very pleased with ESK's performance, as well as the continuing integration of ESK with Ceradyne.
"The strong 2004 increase in new orders and year-end backlog provides support for continuing Ceradyne growth in 2005. Our new Lexington, Kentucky plant is now 'on stream' producing diesel engine components and ceramic armor plates. This new plant should permit us to meet new requirements for these products."
www.ceradyne.com
ENDS