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Ceradyne Falls On Outlook

Costa Mesa-based body armor maker Ceradyne Inc. said it expects sales this year at the lower end of a previous forecast.

Its stock was down about 7% at end of trading, giving it a market value of $450 million.

The company is looking for sales of $465 million to $500 million for 2009, with a “higher probability” of them being at the lower end.

It expects full year earnings of $42 million to $52 million.

Ceradyne makes bulletproof vests for ground troops in Iraq and Afghanistan. It’s been looking to expand into the solar energy industry, as orders from the military have tapered.

First-quarter sales reported Tuesday came in at $99.8 million, down from $188.5 million a year earlier, a 47% drop.

Profits came in at $708,000, down from $32.4 million a year earlier, or 99%.

After factoring an accounting change for convertible debt, it earned $1.3 million, well off the $5.2 million analysts were looking for.

New orders in the quarter were $150.7 million, down from $211.8 million the previous year.

The company has cut its workforce by 33%, or 592 jobs, mostly in its bulletproof best operations in California and Kentucky.

This year, it laid off 40 from its headquarters operation. Another 70 were to be let go from its Irvine operation by the end of the month.

In March, it received its first order for its next generation vests, the XSAPI, with the Pentagon for $77 million.

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