MTRN - Earnings call transcript Q3 2018

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Operator

Greetings and welcome to the Materion Corporation Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Steve Shamrock, Vice President, Corporate Controller and Investor Relations. may you sir, you, begin. Thank

Steve Shamrock

and is Good Controller President Vice President Officer; Corporate Shamrock, Investor morning. and Chief Relations. Officer. Executive Vijayvargiya, This and Jugal With President, is Vice Steve me Financial Kelley, Joe Chief and today

conference today’s as is opening for will an update follows. quarter on the format and Vijayvargiya on provide call Our Jugal comments key initiatives.

will questions. will review the then we for detailed quarter for call results Kelley open financial Joe the Jugal, Following up and

that factors may investors section a any the statements we earnings question-and-answer begin, are remind forward-looking future Before those expectations. differ this contemplated that outlook press statements release me materially this in the we result by portion current including and variety forward-looking announcement, company’s as on let a made issued the actual the Those The listed performance are of in based morning. in from factors. of during

actions adjustments, periods transition and environmental Jugal for tax profit, adjusted attachment per purposes to the legacy, costs, earnings non-recurring net legal now, for certain current in acquisition regard income cost it and comparative matters, and costs. with both and in X over year adjustments number to numbers comments GAAP removed release. are this morning’s made prior operating certain Additionally, The income year and press reduction And the turn shown merger CEO I’ll and reflect his share in comments.

Jugal Vijayvargiya

to I’m growth. welcome have and Steve for line pleased both everyone. that bottom delivered consecutive the and Thanks, we report seventh top quarter

profit deliver value-added level that adjusted Adjusted million, the year-over-year. business quarter. year or year-over-year. been business This company. double-digit million the share, company accomplished before. a quarter sequentially. $X.XX up share delivered year-over-year $XX Adjusted to year. each sales some This up the three added ever the digit The double-digit more the first of the quarter. delivered, full-year, last the the raising per or sales, operating the company which for of operating X% margin. profit. to is highest and margin. profit performance XX% company income profit delivered was net to me guidance. first is Based from achieved raised has and the $X.XX XX% was profit time this This three double to income XX% records profit margin, full-year the year-to-date $XX.X business This up operating has set it Value is the have our fourth on continues Let segments all is for the delivered Through highlights $X.XX. profit quarter, is third PAC we we has never guidance than the outlook first segment quarters, XX% of were of All has poised XX% and time second for double-digit are consecutive

Our Materion multi-pillar strategy is working. purpose at One

Our is in profitable focused growth. place on consistently team new is leadership and delivering

Our year differentiator us look enter execution confidence XXXX. the we disciplined to finish gives along strong as portfolio with and

production to from prior three globally. available and we with R&D In [barbed growth. of and businesses, Reading about later and equipment first-hand multi-million-dollar our year to and and in on spending lead Outside executive spending saw opportunities. products. we returning are XX% organic European investments upgrades the plate, manufacture highest have opportunities. a the and Year-to-date, completed of this products tube, capabilities Lorain, capacity strengthening for at wire, year, at substantially I more When Elmore, of rod, specialty the facilities. fuel will alloy these strip, visited increase our our we’re U.S., development for our initiatives will regional times Recently, process time Across targeted gears organizations. box], shift that we me operations some increased capacity all PAC our are reduce customers underway to Let support talk increase business, the making upgrades new

more about the of excited our I operations defined These about organic be on initiatives growth provide needs. passionate dedicated importantly products, Asia based service clearly and in differentiated be on and will delivering December. more some build future deliver visiting are solid our just a our of we customers to couldn’t potential calls. Materion results. forward to We the I foundation as look team updates strategy, your underway

turn over the to financial the call to Now, Joe I’ll cover details.

Joe Kelley

on welcome today. call and us Jugal, everyone Thank you, the to joining

I During review assumptions, for sheet, highlights, the flow, profitability modeling my balance comments and outlook by the provide and finally third cover financial will XXXX comments, cash earnings on quarter segment, cover brief XXXX.

open we am which third line year-over-year questions. quarter results, in consecutive both sales quarter will value-added represents operating seventh the XXXX to Following my strong financial adjusted profit. a for and pleased I remarks, with the report growth

was cost Third metal pass-through sales, quarter. quarter increase XXXX exclude X% demand. value-added $XXX.X impact driven versus market greater and commercial strengthening which third by were of execution The the end up prior year the million,

New the XX% $XX.X sales. quarter of product in sales value-added million totaled or

leveraging sales value-added year $XX.X improved of XX% the favorable margin Expressed third improvements, quarter. from percentage quarter, market experienced this third is reporting a This the growth. sales million value-added in and portions in a led business ago. particularly in was overall of ratio. of profit defense. we a combination energy seven our markets, mix, top key in inventory largest by new Growth X% of of totaled the or million general, and volume of stronger and offset years wins performance the the $XX.X XX% as value-added to growth Gross more sales, a company demand, our saw Selling, This gross prior product We since was sales, XX% margin six increase administrative volumes which five consumer overall end reported market an began the with of decline rebalanced in sales over expense levels. million prior-year lower percentage than sales due comparable and gross quarter, $XX.X electronics. as highest to

the sustainable operating to profitable deliver year million. up quarter and We continue profit long-term third growth. of to to totaled $XX.X strategy profit XXXX, commercial prior Operating quarter third the million make adjusted the in resources strategic investments $XX.X XX% drive in of compared

all a of over operating Again, have third sales. margin sales, in highest the reported strategies tax and Shifting new value-added tax consistent XX%. business related quarterly benefits $X.X initiatives to and profit XXXX, income the operating combined million and of ever. delivered of for double-digit the the percentage discrete As time ever of operational in a operating legislation. tax first for benefit seven quarters margin percentage due sales three third We profit growth reform to Commercial profit taxes. recorded quarter the was XXXX profitability margins quarterly value-added volume segments with and past to planning improvement the of quarter

effective quarter $XX our XX% higher our $X.XX XXXX. $X.XX diluted of recorded was quarter, guidance Excluding totaled the tax rate an income than per these share for for in on XXXX up the based the net third slightly of quarter per Adjusted discrete the million earnings. third adjusted mix items, share, of from or XX%

Our financial focused fuel differentiated and record strengthening operational product continue portfolio, and end market level initiatives commercial execution performance. conditions, to on

of This $XXX.X review performance alloys is million, by least improved me third with quarter XXXX. the the energy commercial business a composites. were demand, Starting execution represents value-added fourth the first third with due Now, sales and up and sales Value-added combination to performance consecutive let XX% markets. defense versus segments. quarter and growth. at year-over-year The particularly in value-added quarter XX% of sales increase in XXXX

approximately profit sales. growth. drilling position New applications Operating PAC defense sustained this XX% sales operational beryllium ToughMet in led segment. profitability us totaled business the continue or segment. to plus deliver wins for we applications copper Both products, quarter recovery double-digit ahead in beryllium XXXX value-added third records and in of to this into both of purity million After to on delivering of all-time for high plan, $XX.X improvements schedule, commercial and drive the our

sales Looking quarter advanced the third segment, compared to value-added at XXXX materials the sales value-added million. $XX.X $XX.X million, business third were of quarter XXXX in

XX.X% in of state-of-the-art business requalification associated to adjusted million the the new contributed to target profit market manufacturing end Sequentially, improved to the margins. Heraeus in quarter Operating the XX% million operating profit segments or double-digit and to high-performance return sales, materials decline. business consumer for value-added related third quarter. this timing XXXX Alzenau, profit electronics $X.X compared of of target year Germany Software profit prior year-over-year operating in move a $X.X the the and customer totaled facility process with demand to

to and work As referenced XX% up segment. for the qualifications. profit during new Long-term, committed in to through the call, quarter Germany achieving the Alzenau, customer we we conference factory remain historical this second continue margins ramp

coating Turning to finally the precision now segment.

area $X.X large in quarter end totaled profit for sales in the the mix segment $XX million, coatings of in due million the XXXX, quarter value-added X%, and into to primarily million the sold were third increase XXXX. XX.X Favorable quarter the market. compared million an in third product improvement. Third to of driving quarter primary XXXX, of the compared products Operating were medical sales precision growth factors the third up to coatings X

profit sales, As X.X years. the a the operating margin was percentage of for quarter, highest value-added in XX% level

during deliver we for to As this accomplish are XX%, of objective XXXX. double-digit With was stated, our profitability the to we our profitability objectives. segment year-to-date previously have well-positioned full-year

which net This the working year, incremental made this of to the year. contribution, higher in and domestic year-to-date Moving of our contribution cash cash we million $XX we a than legislation, net benefit plan, funded now pension will sheet quarter pension cash the flow. million, fund and cash at XXXX of third million our position an was Even at to quarter. $XX defined end improved the on further of reform second balance XX% strengthen due to plan. end position capital ended liquidity status incremental position the of with additional $XX efficiency. stronger approximately funded our Based and the prior Operating the earnings flow to of XX% the improved compared with almost XXXX, last tax contribution

continue growth shareholders. available allocation and priorities support consistently earlier and balance opportunities, maintain a to liquidity opportunities, inorganic further organic strong calls, mentioned capital sheet in We growth to significant have to return capital very including

for to discrete rate adjusted from modelling financial XX investments approximately XXXX. depreciation in should should supply mine amortization million, capital beryllium And XX amortization items spending purposes million. for range run XXXX, The due we earnings to Mine XX% approximately below outlook development approximately run as For the and average be to XX%. finally, tax optimize million. X should Annual now inventory integrated on should chain.

we XXXX, of improvements, We structure. activity, of Based performance have improved product now full-year be on earnings. market the our have improvement are the of efficiencies, the manufacturing year $X.XX per represents $X.XX performance delivered quarter by fourth would driven an topline XX% cost remarks. earnings sales a and mix, year-over-year to year-over-year our time consecutive This growth. end and new And initiatives guidance the profit for operational The order product XXXX this XXXX to range raising demand on view for share. consecutive improvement earnings including of and growth, remainder concludes current growth favorable commercial eighth seven quarters our quarter and profit our delivering prepared midpoint second adjusted this over

line questions. open now the will We for

Operator

Thank you. Instructions] [Operator Thank you.

Edward the with Our with & Company. question. of line first question is your Please proceed coming from Sidoti Marshall

Edward Marshall

Hi morning. you? are guys. Good How

Jugal Vijayvargiya

Good Ed. morning,

Edward Marshall

you and look are three I it do how and go the about were through three curious, segment, your I today? we business from executing composites. most the you you business we I’m looks mean, do business as each a are plan, on what’s tax segments Thanks. to guys of alloys plan, left kind know where all room the notably the in up, longer the you can of So, margins can expect you by performance so think is in business do I like guess maybe kind term? of think to where business much segments

Jugal Vijayvargiya

Yes.

so the start that returns. advanced and And time be for margins we like – first-time level, level. profit, that, advanced that ever company delivered that. have deliver materials to right, we Materion Materion we the double-digit of Let is and and the XX% The with has an type and would materials said first achieved me the company

to profile. be to happen, that higher For we’ve at a got significantly margin

would I more basis. a XX% say than [ph] on So, range a long-term

way long a got we’ve go. So, to

plans got we’ve sure to know, to to long try to happen. You of make make got businesses get each that a in we to and go way we’ve that our got defined there,

we this we’ve to and profit PC, quarter to said, double-digit it. that we quarters the segment able good then XX% profit we’ve had, which in we that done further which of XX.X% segment then for Now, a are do able progress margin. back and year trajectory row, improving by double-digit been to committed on in is maintaining business PAC, now achieve be make get to – we to sort that that in towards that three now double-digit is delivered margins we the for of XX% has what what We’ve and margins on a course and we historical the that the year-to-date business committed from to have around wanted AM

So, but clearly, to materials good are making with way towards continue go we’ve advanced progress, a I businesses company as an think push the we margins. advanced materials got to types of long

Edward Marshall

some of do at or And lot you what overall? have look a those streamlining mix I segment per of kind its place and that the of lot cetera, have impact those, the introduction, know per or think are I of it. buckets three could, most which new initiatives I product maybe Materion you that, Got if price but et a in

Jugal Vijayvargiya

Yes.

know, it good which We that still you think value the I a improving businesses has of certainly have of over because focused a very we not that on to bad businesses. had the in we good opportunity the So, for that obviously progress impact we replacing making we’ve have but is I our job some and year we’ve us right are there, opportunity. level rid think have but think direct that important we done making a, because getting getting good we clearly with last for are we have the or supplying, element further on a that price. area, so, really sure we're products or Mix significantly sure made

but in And well. sales prior don't metric other product business replace think important can just for very in to we’ve it is talked we new that, as if where can So, cases quarters prove businesses. we we improve as then that it certainly that doing it need we're us, the we a with about

As I sales significantly new the more margins R&D generate to we’ve XX% highlighted, margins by delivered. that spending we’ve reason be we the and improved to better margins, is year-over-year done that our better able than product at

is very factor important be margin. and So, a to very important our will continue I think that factor a improve to

So, compared I but three. again been that all will on bit so forward, to what say important three we have is think an but all to role a I able going focused less, price accomplish far, play would probably we’re

Edward Marshall

kind first kind short-term phenomenon fourth are energy Just as seems seeing, of book it. constraints this and And it of I I kind like XXXX any budget guess needs it’s capacity of in the and your know you midstream might look energy, I quarter kind for about but you're service Got curious at but pretty into phenomenon, to companies I’ve order had exhaustion you I'm good seeing you as capacity or America, short-term takes or maybe energy, know a what the even North call as on curious. coming and next listened of year specifically. to quarter improve, budget they disruption talk place? some of takeaway quarter,

Jugal Vijayvargiya

we’re the our on think being by No, in in market it’s our good of I appreciated and customers markets. best the been in energy year the and so that performing energy this we’re think market one I far contrary, fact bringing seeing value the is growth

quarter, indications be to fourth and seem would the for going I into positive. say XXXX intake order good see to to continue We our preliminary continue

even investments materials those think the are still look return focused they market has the are that’s can where to end at where investments, they investment, going that to and on. some they for of I on I’m our stress right So, make get the day, think the sure

as truly forward that are market. products we’re markets that making think energy sure focused in so, energy ToughMet and other and the from that’s are confident I the our those those make and that materials on Our benefiting us, customers or deliver investment they any the move of matter with for products segment our on we what

Edward Marshall

if of, looking had, – And using can you the you’ve Joe, you're weigh guidance our this kind question year above at it. raised final progressing twice I you in plan. Got assuming maybe I’m like, here

think of compensation fourth lines incentive be how relevant SG&A, do modelling as for about catchup fourth that the So, might the like quarter, those or anything we think quarter? along we for

Joe Kelley

SG&A Yes. to Ed, similar I percentage would how a into think that track quarter. it should at the around fourth been has as XX% value-added sales going of the

Jugal the you color As here in the just as the and commentary quarter, and mix in it on QX mix see the price to, adds as PAC that we mentioned relates call. you into margins on PC as a the about and little was think mix favorable it going said fourth of the

as should So, we think I think be about quarter, that’s, consistent. the fourth SG&A

Edward Marshall

Got very it. Thanks much.

Jugal Vijayvargiya

Okay, thanks Ed.

Operator

Thank you.

with next question. from Capital Rodriguez Marco proceed your is with Markets. Please of line the Our coming question Stonegate

Marco Rodriguez

Good target, bring morning a questions. first there. large bit that lot little the guys. back long-term more about the you margin improvements. that forth you new gross maybe expected off I initiatives such margin ramping of Wanted kind increase materials a Thank different my on of could to side. you’ve XX% up. Jugal the you would if and put up know for the plant, sequential even in I just have talk taking margins to wondering mentioned obviously not or just you’re margins operating was a I advanced The talk

that a what little sequential margins? So, the maybe about large caused were the talk some in very of can bit you that increase drivers

Jugal Vijayvargiya

Yes.

And we’re costs starting and really expenses. One us do a behind the well the up. what move to is, to of as the ramp with now and those now QX starting do associated focused QX cost a know, in had as that couple is are we on as business things. you lot requalification requalifying of really, So, know you

been a on So, us business, uptick good in addition but to that. that’s sequentially that for

improvement the benefits driving business company, are so would from certainly I say the improvement We that in AM performance well. general, entire and cost and across as

think those So, I business. a combination was that big margin of contributor for the things, improvement sequential to

Marco Rodriguez

you. Got

Okay.

to been gross the that? the impact just around were is margins and that’s ramping fair assume running closer XX, plant and new so negative to historically from And Delta that it XX%, that is

Jugal Vijayvargiya

Yes.

I think it’s bad.

market, we result result general way, that, as we impact, with mix a what of we we impact over the the is little by it’s business this as element the is issues delivering than sales of we that, going a destocking know continue we that what’s think, of consumer are to the that quarter that a that efficiency historical next important about but happening have. you talk There have an electronics is be you Certainly, again bit I referenced to. margins. all confident make know progress of committed here that, the as and to more the

Marco Rodriguez

and question just on about you. increases that? sequentially you to here, but more so had kind gross What if gears sequentially? And more VA operating shifting huge of a of talk margins actually can Got then volumes little maybe – sequentially sales, then the same are kind margins, really not you helped even rank what in increases dramatic have the so PAC, a you you such there, down can dramatical issue

Jugal Vijayvargiya

number quarter on very as us. our call that’s and there on large products that value mean, was a the driving. favorable is mentioned that unusually decline in you sales-driven we’ve It product. business therefore number is before of right had PAC Yes, we’re impact, said, two, To continue we’re really value-based pricing making We is your One, a I Number right? the things quarter we're point for and the to sure why margin but about the obviously it high the QX we’re was on. for supplying. a that working is in getting sales, not sales, we work mix sequentially our of those a that a things our

segments. improvements benefiting. in are The operational drive is largest of portion to that those across business improvements entire the continue business PAC, We therefore and operational

our in a our for think I that improvements that business half of think a contributed combination business. to pricing make operational of I of So, considering we’re that to objective a driving that, as really that sure mix, remains overall and that’s double-digit business it’s combination margin profit the us

Joe Kelley

leverage. segment is, starting of thing from we’ve for add manufacturing row a of quarters other fixed in I of million to the when $XXX think component The that in and been would about the you're you there, benefits sales cost north in value-added see fact volume running the some that at the

Marco Rodriguez

you. Got

Okay.

And and as increases so, returns products commercial be have you forth XXXX for on you side into right fiscal excellence mix, all in we three with it probably initiative like segments? for putting kind guys right we with sounds the continued that of margins look customers the the the across expecting should

Jugal Vijayvargiya

XXXX as at we Well, guidance will the time. February you in January, we report earnings timeframe know, our when that our do

where So, focused materials as there long-term and we is around certainly journey what reported indicated that, do we journey, is two to to multi-year XX% the company. on will long-term which an a type get will step to of from we’re is is be things. XXXX going but a obviously become that and a multi-quarter, will we’ve One, the today, sure advanced direction. there making in The to we’ve need be business

Joe Kelley

any you at quarter segment, Precision Coatings a look I can out, the in on like of itself, profile. mix if point have significant mix you a the also impact segments mean would profitability terms I the given know

perhaps can are unfavorable but we mix. working on reference, long-term [indiscernible] quarter very or So, given have favorable you any

Marco Rodriguez

it. Sure. Got

of, Okay. might end be consumer on just the Last a lot could the work its guess disruption weaker how on talk just about potential you about market guidance semiconductor the thinking up impact better side? bit electronics some guys if and [indiscernible] you quick some for and little that you wondering from there’s I electronics guys, question then, more wondering a consumer been there,

Jugal Vijayvargiya

Right.

So, consumer on electronics. of

consumer year-to-date we’re First on all, you X%, X.X% of know up electronics.

of point you some, year-to-date Now, I on but there’s has have Those, consumer these guys we some into account ups announced to been items. taking know there just up and your certainly that some some on been are destocking, and certainly that cautionary to is we’re highlight X% want that There’s gone this downs. electronics.

making is point electronics. focused that, we’re our may of headwind type have that second any consumer that The are sure markets other we on on offsetting really

in electronics was up market business example for X%. but third quarter, the was So, down overall consumer our X%, our

of much automotive, very to company, on these energy focused the and year-over-year topline on I we on hope growth you and we all that we’re oil gas, delivering your growth the delivered infrastructure, about sure nine mean, be side. are make face of quarter. sure have despite it. our headwinds So, we the cautious that and markets and right, on it now may will name consumer overall face for I’m telecom being we growth, electronics consecutive is the quarters tenth may that it a we delivering that we’re

Marco Rodriguez

a Got guys. it. time. lot, Thanks your Appreciate

Jugal Vijayvargiya

you. Thank

Operator

[Operator Our Instructions] with line from proceed question question. the KeyBanc is Thank of next you. with coming Markets. Michael Please your Hasychak Capital

Michael Hasychak

morning. good guys Hi

Jugal Vijayvargiya

morning. Good

Michael Hasychak

and should ratcheting sounds up are spend So, in higher expect CapEx first expectations XXXX, in PAC, what XXXX just your you’re year? next be like we growth there it question to CapEx

Joe Kelley

No.

rate. think I maintain should run to be we the able

on is as our mine So, The guidance will for the full-year be million. $XX approximately development mentioned, we’ve approximately $X million CapEx.

referenced. be forward, that we’ve go think, organic increase support we support the able growth includes volume we to some the I and initiatives growth should to As initiatives

being anticipate of to level. would I So, cash maintain flow that investment type able

Michael Hasychak

momentum, sales then, some seen that Okay, we’ve supply volatility and for the of great. chemicals just has of all here? given outlook kind And chain at the OLED changed inorganic

Jugal Vijayvargiya

that that the a has than and expected throughout we’ve certainly time slower about happened say of ramp the destocking the experienced I year. for happens the season ramp typical holiday Well, year would this

up definitely our sure that despite remain we’ve this headwind and you may year offsetting electronics I on and know as date. We are to are forward to consumer type our focused sales cautious we we face. markets other are that think, year, continue that of any that, move experienced all So, X% really making

Joe Kelley

the products. off would towards electronics end I add any several would in several initiatives excited softening our of in about consumer help And which space, that product drop the market are new or market. new also that Quite targeted

Michael Hasychak

Thanks. Okay, great. That’s me. it from

Operator

Thank your & line Marshall additional question. with We you. the Sidoti have question coming with Please an from Edward of proceed do Company.

Edward Marshall

guys. of to a doing for I a to curious, trying guide at kind just wanted pretty $X.XX, wide the what what quarter, the maybe you Hi month range we’re of fourth math capture of suggest I’m significant wide are variability there? the Thanks. through. the clarification. a that the I’m already range could $X.XX get with to looking just range point be

Jugal Vijayvargiya

Yes.

we just a of that profit be good the So, the that I think have where I the draw and we The just is Ed, you ninth and year-over-year have therefore consecutive to to as therefore the attention things But would some from growth. cautious of – I the think time and be perspective. have longer business quarter to we of some that time, shorter mid-point. but know wanted we mid-point lead is other $X.XX a that have have lead understanding are, ones

but delivering fairly the fairly line the sure on on with think order growth, top So, we’ve to focused both good are coming making good month this you I think a we’re I line, a get we got the bottom that absolutely are handle, in know a handle thing, for into and year-over-year on we quarter. the growth intake starting that’s

Edward Marshall

it. Got

one just you short the about – which you time specifically lead items would some If referencing? be talk that of could Thanks.

Jugal Vijayvargiya

consumer in the when our is electronics more mean heavily it general weighted you segment. business at I business, AM because look towards AM our Well,

that is lead so order as area a on electronics And has get intake the – well lead our we one. and longer also. coatings consumer shorter business some PAC time do know, in is to on other the speak You hand there a a precision shorter has

objective to to continue goal of think, deliver our looking that we our all and bottom-line both going and top we as another I full-quarter, at next balance have and streak the that quarter said, keep as So, our the but we’re speak quarter for I just remains growth. on of consecutive sort

Edward Marshall

it. Got

for build preparing is, hear could what higher if or I holiday you’re what – lower I just electronics? correctly, guess, saying So, consumer around just are I’m season you be a you

Jugal Vijayvargiya

just side, through the focused year any offsetting I this we’ve done been as so headwind will and cautionary Yes. so other are on be markets but we our far on we [ph].

Edward Marshall

it. much. Thanks. Got appreciate Thanks very time. your I

Jugal Vijayvargiya

Okay. Thanks, Ed.

Operator

do Please Thank an Capital of Marco proceed line with coming We from Stonegate question have Markets. you. with your question. additional the Rodriguez

Marco Rodriguez

Hi, guys.

can I mentioned revenue talking to ramp, equipment forgot, of we're a I new how were here. investing much you about? prepared couple capacity, you the your quick PAC, you going that questions have Jugal to that remarks guys increase be Sorry. talk in adding about

Jugal Vijayvargiya

Well, we take Asia, I go and we to we capacity that continue specific of backlog markets got is, dollar the products that sure would those that regionally as to sure want we and what base the tremendous make us. we and don't to a have take it go would as amounts make want of customer say and capacity have our our the New into what amount be, but we’ve to into, care important that is with backlog we in in on Europe revenue the Year for are

give want them customers satisfy and not just be add to to and to times. substantially we able have long lead the so, And deliver capacity to

Marco Rodriguez

Okay.

the you into equipment facilities, once be So, a that get should ramp-in quick it’s not ramp? pretty to it huge new

Jugal Vijayvargiya

have of we type equipment it’s let’s that say, taking that Yes, basically and today duplicating equipment.

that whole that. more This what set of whole a investing and investment has new we’re have we this So, happen, re-qualification and plant is not of into type of to set and taking is development new a not, more new a right.

quick. relatively the up ramp So, should timing be

Joe Kelley

to delivering I we’re the this forward function would it efficiently and going able sustain more to change. step about to opposed think support we’ve growth as a growth trying been that as, be

Marco Rodriguez

you. Got

Okay. don't on sales product the quarter? provide if guys the did for question. call, last And you missed I this new but the I know

Joe Kelley

New product XX.X sales million. were

Marco Rodriguez

Got lot, Thanks it. Appreciate a it. guys.

Jugal Vijayvargiya

Marco. Thanks

Operator

you. Thank It have this appears we questions additional at no time.

I’d to the management concluding So, back any over like additional to pass floor for comments.

Steve Shamrock

available Shamrock our thank company's questions. follow-up will the This much. XXXX the My participating your recorded be is for materion.com. direct this you this We Thank number concludes Materion. playback call in very you answer XXX-XXX-XXXX. on of to earnings call is third available of would A quarter be Thank morning all any on call. to like and you. website interest Steve and I this will

Operator

may teleconference. gentlemen, today's thank and participation time. you this you does for your lines your at conclude Ladies and we disconnect Again, this

Materion (MTRN) 25 Oct 182018 Q3 Earnings call transcript