Ceradyne Shares Jump on Defense ContractMonday, September 26, 2011
Shares of Costa Mesa-based Ceradyne Inc. jumped today after it landed a $127 million contract for ceramic armor plates for the U.S. military.
The three-year contract with the Defense Logistics Agency Group Support in Philadelphia is for armor plates for the United States Army, Navy, Air Force and Marine Corps.
The maker of bulletproof vests and other products saw its shares surge 12.4% to close at a market value of about $716 million.
“The absolute size and multi-year nature of the award lays the groundwork for the defense portion of the previously announced five-year ‘Ceradyne $1 Billion’ strategy” on annual revenue, Chief Executive Joel Moskowitz said in a statement.
Ceradyne had about $400 million in revenue last year.
Ceradyne also has been pushing for revenue beyond the defense sector, with recent deals for products such as ceramic crucibles used in solar-energy panels.
The recent order for the military is set for initial deliveries next year, with completion expected in March 2013.