Shares of Costa Mesa-based Ceradyne Inc. rose nearly 13% Thursday after the maker of body armor reported record results during the second quarter that beat Wall Street estimates.
The defense contractor, which supplies ceramic body armor to the Army, saw its net profit rise to $11.4 million during the quarter, up 75% from the year-ago period. Analysts were looking for income of $9.2 million.
Ceradyne’s sales jumped 129% to $89.9 million in the period. Wall Street was looking for sales of $80 million in the second quarter.
The company said that about 31% of the sales gain was connected to Ceradyne’s 2004 acquisition of ESK Ceramics, a German company specializing in commercial ceramics.
Ceradyne shares were up more than $3 to about $31. The rebound comes after the company hit a 52-week low of $17.8 following a disappointing first quarter report when the company failed to meet analysts’ estimates.
Ceradyne said at the time it couldn’t meet manufacturing goals during the first quarter after the military changed body armor specifications.
But production expansion at its Lexington, Ky., plant helped the company exceed its shipment goals during the second quarter, said Joel P. Moskowitz, Ceradyne chief executive.
Future orders have been rising as well.
In June Ceradyne said it landed another order for its ceramic body armor,this one for $75.5 million,under a total $461 million military contract the company won in 2004.
