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Ceradyne Gets $41M Army Order

Costa Mesa-based body armor maker Ceradyne Inc. has won a $41 million Army contract.

The order for its body armor inserts, designed to protect the sides of troops, are scheduled for delivery from June to September this year.

More orders from the Army are expected, according to David Reed, president of North American operations.

“Based on non-binding discussions with the Army, we believe there will be further delivery orders in the second quarter,” he said.

Ceradyne’s chemically produced ceramic products are used to protect military troops from bullets and shrapnel. It also makes products for the auto, dental and solar industries.

In February the company lowered its profit forecast and cut 234 jobs due to delayed government orders for its armor.

For 2008, the company said it expects sales of $715 million to $836 million.

Ceradyne employs 2,232 people, with about 1,000 in the county.

Its publicly traded stock closed up nearly 9% following the announcement, giving it a market value of $950 million.

The company has been looking for a future growth driver in its new armored combat vehicle, The Bull, which is being tested by the military.

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