Expansion at its manufacturing plants helped Ceradyne Inc. boost sales and profit in the second quarter, the company said Friday.
The maker of ceramic body armor for the military said sales rose 80% in the period to $162 million, versus a year earlier. Net income was $30 million, up from $11.4 million a year ago.
“The expansion of production capacity at our Lexington, Ky., technical ceramic manufacturing facility this year allowed us to ramp up in order to meet the U.S. government’s continuing requirements for lightweight ceramic body armor,” said Chief Executive Joel P. Moskowitz.
Ceradyne won a $60 million order from the military in July. The award is part of a five-year contract that could bring in a maximum of $612 million in revenue.
Ceradyne also said a committee was looking at its accounting for past stock option grants. The company took a $1.5 million charge in the second quarter related to the grants and said its review isn’t complete.
Meanwhile, Ceradyne said it plans to begin work this quarter on a ceramic making plant in Tianjin, China. The 117,000-square-foot factory will be the company’s first in China.
Ceradyne initially is set to make ceramic-based products for Chinese producers of silicon solar energy cells.
The company said bookings for the second quarter were a record $123.5 million, up 4% from last year. Ceradyne’s backlog,contracts won but not fulfilled,was $257 million at June 30, up 19% from last year.
