Dynamic Materials Corp.
) 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
Dynamic Materials, which is among the prominent players in the
metals processing and fabrication industry along with
Precision Castparts Corp.
Worthington Industries Inc.
), 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
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.
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.
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).
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