A series of one-time charges, including money related to closing a French plant, caused defense-products manufacturer Ceradyne to report a second-quarter loss on Tuesday.
The California-based company, which has operations in Lexington that include production of body armor for the military, reported a loss of $11.2 million, or 44 cents a share, for the quarter. A year ago, the company reported a profit of $32.6 million, or $1.23 a share.
The company said the one-time charges amounted to $15.3 million, or 48 cents a share. They included a pre-tax $10.9 million charge for the closing of its plant in Bazet, France, and severance expenses. The company said it expects to cease all operations in Bazet by the end of the year. It said the operations at the plant had lost about $1.6 million in the first six months of the year. It's relocating that work to its facility in Kempten, Germany.
Other charges in the quarter included a $3.8 million write-down on the value of Ceradyne Canada and a $600,000 accelerated depreciation charge.
The loss was the first for the company since 1994.
"Without these charges, the quarter would have been modestly profitable," chief executive Joel P. Moskowitz said in a statement.
The company's sales suffered heavily during the quarter, with revenue dropping 48.5 percent compared with a year ago, to $95.3 million.
Its businesses have been affected by the recession, particularly its industrial side, which produces ceramics that end up as part of new construction projects, including high-rise buildings.
"Although we continue to see weakness in many of our markets on a year-over-year comparison, we are guardedly optimistic that we have seen the worst of the recessionary downturn," Moskowitz said in the statement. "Our more positive outlook is based on the significantly reduced inventory levels of our customers and what we believe is the initial acceptance of certain new non-defense products."
During the quarter, the company acquired ballistic-helmet manufacturer Diaphorm Technologies of New Hampshire.
The next month, Ceradyne announced that the Marine Corps Systems Command has requested that it build developmental test helmets for delivery in the coming weeks.