Dynamic Materials Shy by a Penny - Analyst Blog

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Dynamic Materials Corp. ( BOOM ) posted earnings of 21 cents per share in the fourth quarter of 2012, down 22.2% from 27 cents in the year-ago quarter. It missed the Zacks Consensus Estimate of 22 cents.

For full-year 2012, earnings were 87 cents per share, down 6.5% year over year, also missing the Zacks Consensus Estimate of 88 cents.

Dynamic Materials, which is among the prominent players in the metals processing and fabrication industry along with Precision Castparts Corp. ( PCP ), Worthington Industries Inc. ( WOR ) and Kaydon Corporation ( KDN ), reported sales of $52.5 million in the reported quarter, down 3% from $54.3 million in the prior-year quarter. However, sales exceeded the Zacks Consensus Estimate of $52 million.

For the full year, sales amounted to $201.6 million, down 4% year over year. But it beat the Zacks Consensus Estimate of $196 million.

Segment Sales

Nobleclad, which is the company's Explosive Metalworking segment, reported sales of $30.7 million in the quarter, down 1% from the year ago quarter.

Sales at Dynamic Materials' Oilfield Products segment decreased 8% to $19.5 million from the prior-year quarter.

Sales at the AMK Welding segment increased 16% year over year to $2.4 million in the quarter.

The company strengthened management teams of all three business segments, established a stronger presence in Asia, initiated the construction of major oilfield-product production facilities in Russia and North America, and expanded its customer base and end markets at AMK Welding.

Financial Position

The company's cash and cash equivalents stood at $8.2 million as of Dec 31, 2012, versus $5.3 million as of Dec 31, 2011. Long-term debt stood at $0.6 million as of Dec 31, 2012, compared with $1.2 million as of Dec 31, 2011.

Outlook

For the first quarter of 2013, the company expects sales to decline in the range of 7%-10% versus $50.2 million reported in the first quarter of 2012. Gross margin is expected in a range of 27%-28%. During the quarter, the company also expects to incur one-time expense of $3 million related to management retirements.

The company expects its consolidated sales to increase 8%-10% in 2013 from the 2012 levels. It forecasts gross margin in a range of 27% to 29%. Effective tax rate for the 2013 is anticipated to be in a range of 20% to 22%.


Dynamic Materials caters to  a global network of customers in the energy, industrials and infrastructure markets through three business segments -- Explosive Metalworking, which uses proprietary explosive processes to fuse different metals and alloys; Oilfield Products, which manufactures, markets and sells specialized explosive components and systems used to perforate oil and gas wells; and AMK Welding, which utilizes various technologies to weld components for use in power-generation turbines, as well as commercial and military jet engines.

Dynamic Materials currently retains Zacks Rank #3 (Hold).




DYNAMIC MATLS (BOOM): Free Stock Analysis Report

KAYDON CORP (KDN): Free Stock Analysis Report

PRECISION CASTP (PCP): Free Stock Analysis Report

WORTHINGTON IND (WOR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BOOM , KDN , PCP , WOR

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