We are an integrated producer of high-performance advanced engineered materials used in a variety of electrical, electronic, thermal and structural applications. Our products are sold into numerous markets, including consumer electronics, industrial components and commercial aerospace, defense and science, energy, medical, automotive electronics, telecommunications infrastructure and appliance. Sales in the third quarter 2013 were
$275.4 million, a 5% decline from sales in the third quarter 2012. Shipments to several markets and applications improved in the third quarter 2013 over the third quarter 2012, including automotive electronics, medical and energy. However, shipments to the defense and science market softened due primarily to shipment delays and government spending cutbacks, while sales to the consumer electronics market declined in total, although some sectors showed improvement. Sales to the industrial components and commercial aerospace and telecommunications infrastructure markets were also lower in the third quarter 2013 than the third quarter 2012. Operating profit was $6.0 millionin the third quarter 2013 compared to $13.4 millionin the third quarter 2012. The reduced profit was caused by the margin impact of the lower sales, facility consolidation costs and other factors. The effective tax rate was only 2.7% in the third quarter 2013, largely as a result of adjustments to the projections for the year and discrete items recorded during the period. Earnings per share were $0.24in the third quarter 2013 and $0.39in the third quarter 2012. Cash flow from operations was $38.5 millionin the first nine months of 2013. The cash flow was used to fund capital expenditures of $24.2 million, dividends to shareholders of $4.9 millionand a reduction in debt of $5.9 million. Cash on hand also increased by $4.1 million. During the third quarter 2013, we renewed our metal consignment agreements and extended the maturity dates out one to three years. These renewals followed the securing of a new revolving credit agreement in the second quarter 2013 that extended the maturity date and increased our borrowing capacity. RESULTS OF OPERATIONS Third Quarter Ended Nine Months Ended Sept. 27, Sept. 28, Sept. 27, Sept. 28, (Millions, except per share data) 2013 2012 2013 2012 Sales $ 275.4 $ 290.6 $ 880.7 $ 969.3Operating profit 6.0 13.4 28.9 35.7 Income before income taxes 5.3 12.6 26.5 33.4 Net income 5.1 8.1 20.8 22.2 Diluted earnings per share $ 0.24 $ 0.39
$275.4 millionin the third quarter 2013 were $15.2 million, or 5%, lower than sales of $290.6 millionin the third quarter 2012, while sales of $880.7 millionin the first nine months of 2013 were $88.6 million, or 9%, lower than sales of $969.3 millionin the first nine months of 2012.