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Ceradyne Gets $6.5M Order From Army for Armor Inserts

Moskowitz: delays in previous orders “being addressed”

Costa Mesa-based Ceradyne Inc. has received a $6.5 million contract to supply a lightweight ceramic-armor design for U.S. Army groin-protection inserts.

The company is a manufacturer of ceramics-based products and components for defense, industrial and energy markets, among others.

A preproduction sample will be shipped out in the current quarter, with an initial production order expected to follow shortly.

The remainder of the orders, which totals roughly $5.9 million, is expected to be shipped at the government’s discretion over the next five years.

The new contract for body-armor parts comes after a quiet quarter for Ceradyne, which is working through delays on a few of its other orders.

Ceradyne landed a $170 million order for its enhanced combat helmets in March.

Production has been delayed because of technical issues, which “are being addressed by our staff, and we anticipate that … we will be in volume production probably late in the third quarter this year,” Chief Executive Joel Moskowitz said during an earnings call with analysts last month.

Ceradyne received a “stop work” notice in March on a $7 million order for ceramic body armor plates from the U.S. Special Operations Command awarded in October. The company said it has until late August to come up with a “corrective action plan” to address the organization’s concerns.

Ceradyne recently lowered its earnings forecasts for the second half due to reined-in expectations for body armor shipments.

—Jane Yu

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