July 24, 2007:
Ceradyne reported a strong second quarter, with sales rising
14.4% to 185.4 million (from 162 million in Q2/06. Gross profit
was 41.7%, up from 39.3% and net income increased by 31.5% to
38.3 million ($1.38 per diluted share). However, new bookings
in the second quarter were significantly lower than last year,
reflecting a drop of about 50 million in the company's backlog.
Joel P. Moskowitz, Ceradyne president and chief executive officer,
explained that the company is following its long range strategy
of global diversification, particularly regarding non-defense
applications and advanced technical ceramic products.
is also looking at the longer term regarding the MRAP
program. Last month Ceradyne provided its new armored vehicle,
the BULL, designed to meet
MRAP II requirements, including protection against the more
sophisticated IED (improvised
explosive devices) threats such as EFPs
(explosively formed penetrators). "we believe there
is substantial congressional and military interest in this unique
vehicle." Said Moskowitz. Ceradyn's lightweight armor materials
are currently undergoing US Army evaluations testing their adherence
to the Army's Long Term Armor Strategy (LTAS) requirements.
This program introduces mandatory baseline requirements for
all future tactical wheeled vehicle fleet. "We believe
that this selection of our LTAS solution could lay the groundwork
for future military vehicle requirements that must conform to
LTAS." Moskowitz commented.