MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--Materion Corporation (NYSE:MTRN) today announced an update to previous financial guidance provided for the first quarter 2020.
Due to the unprecedented magnitude, duration, and uncertainty of the novel coronavirus (COVID-19) on global markets, we expect first quarter 2020 value-added sales to be approximately $12 to $15 million lower than levels assumed in our previously issued earnings guidance. Furthermore, we will update full year earnings guidance during the first quarter earnings call.
“Materion is focused on ensuring the health and safety of our employees and those in the community which we operate, while at the same time providing our customers with exceptional products and services,” commented Jugal Vijayvargiya, President and Chief Executive Officer. “Although the extent and duration of the COVID-19 impact is unknown at the present time, we remain confident in our financial strength and long-term ability to continue executing our One Materion strategy to deliver profitable growth.”
Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements, in particular, the outlook provided above. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors.
These factors include, in addition to those mentioned elsewhere herein:
- Actual net sales, operating rates, and margins for 2020;
- The global economy, including the impact of tariffs and trade agreements;
- The impact of any U.S. Federal Government shutdowns and sequestrations;
- The condition of the markets which we serve, whether defined geographically or by segment, with the major market segments being: semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center;
- Changes in product mix and the financial condition of customers;
- Our success in developing and introducing new products and new product ramp-up rates;
- Our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values;
- Our success in identifying acquisition candidates and in acquiring and integrating such businesses;
- The impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions;
- Our success in implementing our strategic plans and the timely and successful completion and start-up of any capital projects;
- Other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal financing fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company’s stock price on the cost of incentive compensation plans;
- The uncertainties related to the impact of war, terrorist activities, and acts of God;
- Changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations;
- The conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects;
- The disruptions on operations from, and other effects of, catastrophic and other extraordinary events including viral pandemics such as the COVID-19 outbreak; and
- The risk factors as set forth in Item 1A of our 2019 Form 10-K.
Materion Corporation is headquartered in Mayfield Heights, Ohio. The Company, through its wholly owned subsidiaries, supplies advanced materials to global markets. Our unique product portfolio includes high performance alloys, beryllium products, clad metal strip, composite metals, ceramics, inorganic chemicals, microelectronics packaging materials, precision optics, thin film coatings and thin film deposition materials.