UPDATE 1-Ceradyne posts lower Q3 net, sees ’11 above Street

* Q3 EPS 18 cents vs. estimate 22 cents

* Solar products to aid 2011

* Shares up 4 pct

ATLANTA, Oct 26 (BestGrowthStock) – Ceradyne Inc (CRDN.O: ), a maker
of ballistic armor, diesel engine parts and industrial
bearings, reported an 8 percent fall in quarterly profit on
Tuesday, but its shares rose 4 percent as it forecast earnings
for 2011 above current Wall Street estimates.

The company, which has been diversifying its product line
as orders for body armor have tapered off, said sales of solar
products and a turnaround in its industrial ceramic business
would aid 2011. It added its share of overall revenue tied to
defense, now at 33 percent compared with 74 percent in 2007,
would continue to fall in 2011.

Net income came to $4.5 million, or 18 cents a diluted
share, for the third quarter, compared with $4.9 million, or 19
cents a share, a year earlier.

Analysts had expected profit of 22 cents a share, according
to Thomson Reuters I/B/E/S.

Quarterly net sales fell 15 percent to $91.8 million. The
company said new orders in the quarter rose to $110.8 million
from $100.5 million a year before.

Ceradyne stood by a prior forecast calling for profit per
share this year of 80 cents to $1.18 and projected 2011 EPS of
$1.35 to $1.75.

Analysts on average have expected per-share profit of 94
cents for this year and $1.29 for 2011.

Shares of Ceradyne were up 95 cents, or 4 percent, to
$25.01 in morning Nasdaq trading.
(Reporting by Karen Jacobs, editing by Gerald E. McCormick)

UPDATE 1-Ceradyne posts lower Q3 net, sees ’11 above Street