Materion Corporation filed SEC Form 8-K: Regulation FD Disclosure
$MTRN
Industrial Specialties
Industrials
| UNITED STATES | ||||||||||||||
| SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
| Washington, D.C. 20549 | ||||||||||||||
FORM 8-K
| CURRENT REPORT | ||||||||||||||
| Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||||||||
Date of Report (Date of earliest event reported) October 1, 2024
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Item 7.01 Regulation FD Disclosure.
Materion Corporation (“Materion” or the “Company”) is revising its 2024 full year adjusted earnings per share guidance to the range of $5.20 to $5.40, as a result of lower than expected incoming order rates for the second half of 2024.
The Company previously anticipated that semiconductor and industrial orders would continue the improved trajectory seen through the second quarter of 2024, but incoming order rates have developed slower than expected. The impact from a recovery in the semiconductor market is taking longer than planned, with customer inventories remaining at high levels, and the anticipated rebound in the industrial end markets has not yet materialized. The outlooks for aerospace and automotive have also been reduced due to the continued reductions in customer build rates.
In total, value-added sales for the second half of 2024 are expected to be approximately 5% lower than our previous expectations.
The Company has implemented additional cost control actions to mitigate the impact of lower value-added sales and expects to deliver strong adjusted EBITDA margins above the 20% mid-term target.
The Company is presenting full year adjusted earnings per share guidance, which is a non-GAAP financial measure that adjusts for certain special items. Internally, management reviews the results of operations without the impact of these special items in order to assess the profitability from ongoing activities. The Company is providing this information because it believes it will assist investors in analyzing its financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting its operations. It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range.
Forward-Looking Statements
Portions of the narrative set forth in this Current Report on Form 8-K that are not statements of historical or current facts are forward-looking statements, including, without limitation, our adjusted EPS guidance for the full year 2024 and our expected value-added sales for the second half of 2024. 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: the global economy, including inflationary pressures, potential future recessionary conditions and the impact of tariffs and trade agreements; the impact of any U.S. Federal Government shutdowns or sequestrations; the condition of the markets which we serve, whether defined geographically or by segment; 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 start-up and completion 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 consignment 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 in operations from, and other effects of, catastrophic and other extraordinary events including outbreaks from infectious diseases and the conflict between Russia and Ukraine and other hostilities; realization of expected financial benefits expected from the Inflation Reduction Act of 2022; and the risk factors set forth in Part 1, Item 1A of the Company's 2023 Annual Report on Form 10-K and in other reports that we file with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Materion Corporation | ||||||||
| October 1, 2024 | By: | /s/ Shelly M. Chadwick | ||||||
| Shelly M. Chadwick | ||||||||
| Vice President, Finance and Chief Financial Officer | ||||||||