Dynamic Materials Shy by a Penny - Analyst Blog
February 28 2013 - 3:30AM
Zacks
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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