Dynamic Materials’ revenue, income drops in 3Q

BOULDER — Dynamic Materials Corp. (Nasdaq: BOOM) reported a 1 percent decline in revenue for its third quarter that ended Sept. 30.

Revenue for the quarter was $51.9 million compared with $52.3 million for the same period a year ago.

Third quarter profit was $2.5 million, or 18 cents per share, compared with $3.4 million, or 24 cents per share, in the third quarter last year.

SPONSORED CONTENT

The many benefits of simple, coordinated healthcare

Kaiser Permanente combines health care and coverage in one connected system to maximize employee health and minimize employer costs.

Both the 2014 and 2013 third-quarter revenue excludes contributions from the company’s former AMK Technical Services business, which was sold Oct. 1. The Boulder-based company continues to operate two divisions — DynaEnergetics and NobelClad.

The DynaEnergetics division manufactures, markets and sells specialized components and systems used to perforate oil and gas wells. Sales at DynaEnergetics were $28.3 million, up 29 percent from $21.9 million in last year’s third quarter. The segment produced profit of $3.8 million up from $1.6 million in last year’s third quarter.

The NobelClad division uses explosive processes to fuse different metals and alloys for a variety of industries. NobelClad reported sales of $23.6 million, down 22 percent from $30.4 million in the third quarter last year. The division generated income for the quarter was $1.9 million, down from $5.6 million in the comparable year-ago quarter. The decline is attributable to continued soft capital spending in NobelClad’s global industrial end markets.

“We are pleased with the continued growth at DynaEnergetics and remain optimistic about the long-term prospects at NobelClad,” said Kevin Longe, president and chief executive, in a prepared statement. “DynaEnergetics is reporting strong demand across multiple global markets, and is seeing expanding customer adoption of its DynaSelect switch detonator system.

“NobelClad saw a nominal improvement in its third quarter order backlog, and its sales team continues to pursue a variety of order opportunities in what remains a relatively soft capital spending environment.”

Longe said that on Oct. 23, Dynamic Materials signed an agreement to purchase a $14 million manufacturing plant in the Siegerland region of Germany. He said the six-year-old plant will “significantly enhance NopbelClad’s manufacturing capabilities and its ability to serve customers throughout Europe, the Middle East and Africa. We expect the plant will be open by next year’s second quarter.” The plant is part of the company’s plan to consolidate operations in Europe.