Costa Mesa-based military body armor maker Ceradyne Inc. reported third-quarter profits below Wall Street estimates as it lowered its outlook for the rest of the year.

The company's shares closed down 9% Tuesday, giving it a market value of about $425 million.

A third-quarter profit of $6.7 million, which excludes a $1.8 million investment loss, was down from about $19 million a year earlier, or 65%.

Wall Street analysts were looking for $7.2 million in profits.

The company has suffered from slower sales to the military for its armor worn by troops in Iraq and Afghanistan.

Sales of $108 million for the quarter were down from $168 million for the same period in the previous year, or 35%.

Wall Street was looking for $110 million in sales.

The company lowered its 2009 profit forecast to $15.4 million, down from an earlier forecast of $18 million.

Sales expectations also were lowered to $410 million and $415 million from $420 million to $440 million.

Ceradyne has been looking to expand its sales to other industries including solar energy, aluminum smelting, oil and gas drilling, and other new applications used in the manufacturing of glass and automobiles.

Chief executive Joel P. Moskowitz said opportunities for sales to the military next year might be found in a lighter version of its armor, sales to allies, vehicle armor and its recently acquired helmet business.