Ceradyne Inc. closed 2004 on a high note and is bullish on 2005.
The maker of bullet-proof ceramics reported big surges in fourth-quarter sales and profits and upped its outlook for the year.
The company said it now expects profit for the year to be about 3% higher than previously forecast.
For the fourth quarter, Ceradyne reported a 152% gain in sales from a year earlier to a record $83.4 million. Net income doubled to a record $8.8 million, the company said.
Ceradyne’s shares were up about 3% on the news early Friday with a market value of about $700 million.
Fighting in Iraq and Afghanistan has fueled growth for Ceradyne’s bullet-proof vests for soldiers.
The fourth quarter was the first full quarter of results including ESK Ceramics. Ceradyne bought ESK in 2004 to lessen its reliance on defense spending.
ESK makes “evaporation boats,” the metallic lining inside of bags of chips and other food products.
For 2004, Ceradyne’s sales were up 112.5% to $215.6 million. Net income increased 145.4% to $27.6 million.
Ceradyne also set records in the fourth quarter for new orders, which were up 62% to $276 million. Order backlog for the year was $200 million.
The company recently appointed vice president David Reed to the newly created position of president of North American operations. Reed has been with Ceradyne for 21 years.
Reed will oversee operations in Orange County, Kentucky and Georgia.
Michael Kraft was appointed to the new position of vice president sales, marketing and business development. Kraft spent eight years at the General Electric Co.
Chief Executive Joel Moskowitz is beefing up his management team as he reduces his duties at Ceradyne. Moskowitz has been undergoing chemotherapy for Non-Hodgkin’s Lymphoma.
