BOULDER, CO -- 07/01/09 --
Dynamic Materials Corporation (DMC) (NASDAQ: BOOM), the world's leading provider of explosion-welded clad metal plates,
today announced that revenue for its second quarter ended June 30, 2009,
will be approximately 25% below 2009 first quarter revenue of $49.8
million. The Company previously forecast a sequential revenue decline of
between 10% and 14%.
Management said the larger-than-expected decline was due to customer-driven
shipping delays at DMC's Explosive Metalworking business and generally soft
demand in the markets served by the Company's Oilfield Products business.
As a result of the revenue decline, management expects second quarter gross
margins will be below the prior forecasted range of 27% to 29%.
"The current conversion rate of quotes into bookings remains below
historical levels at our explosion welding business, and as a result, we
expect our order backlog from this segment to be approximately $60 million
at the end of the second quarter," said Yvon Cariou, president and CEO.
"Quoting activity within our explosion welding business continues to be
very active, and has gained strength within our Oilfield Products segment.
We remain highly optimistic that bookings rates within both of these
segments will accelerate as economic activity in our end markets improves."
Dynamic Materials will provide any necessary updates to its full-year
financial forecasts in its second quarter earnings report, which is
scheduled for July 30, 2009.
About Dynamic Materials Corporation
Based in Boulder, Colorado, Dynamic Materials Corporation is a leading
international metalworking company. Its products, which are typically used
in industrial capital projects, include explosion-welded clad metal plates
and other metal fabrications for use in a variety of industries, including
oil and gas, petrochemicals, alternative energy, hydrometallurgy, aluminum
production, shipbuilding, power generation, industrial refrigeration and
similar industries. The Company operates three business segments:
Explosive Metalworking, which uses proprietary explosive processes to fuse
different metals and alloys; Oilfield Products, which manufactures, markets
and sells specialized explosive components and systems used to perforate
oil and gas wells; and AMK Welding, which utilizes various technologies to
weld components for use in power-generation turbines, as well as commercial
and military jet engines. For more information, visit the Company's
websites at http://www.dynamicmaterials.com and
http://www.dynaenergetics.de.
Safe Harbor Language
Except for the historical information contained herein, this news release
contains forward-looking statements, including our guidance for second
quarter revenue, margins and order backlog as well as expectations about
future booking rates, all of which involve risks and uncertainties. These
risks and uncertainties include, but are not limited to, the following: our
ability to realize sales from our backlog; our ability to obtain new
contracts at attractive prices; the size and timing of customer orders and
shipments; fluctuations in customer demand; fluctuations in foreign
currencies, changes to customer orders; the cyclicality of our business;
competitive factors; the timely completion of contracts; the timing and
size of expenditures; the timely receipt of government approvals and
permits; the timing and price of metal and other raw material; the adequacy
of local labor supplies at our facilities; current or future limits on
manufacturing capacity at our various operations; the availability and cost
of funds; and general economic conditions, both domestic and foreign,
impacting our business and the business of the end-market users we serve;
as well as the other risks detailed from time to time in the Company's SEC
reports, including the report on Form 10-K for the year ended December 31,
2008.
CONTACT:
Pfeiffer High Investor Relations, Inc.
Geoff High
303-393-7044
