UNITED STATES	
SECURITIES AND EXCHANGE COMMISSION	
Washington, D.C. 20549	

			
 	 	 	
FORM 8-K

					
 	 	 	 	 	
CURRENT REPORT	

			

	
					
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934	
 	 	 	 	 	
Date of Report (Date of earliest event reported) July 25, 2019

			
 	 	 	
MATERION CORPORATION

					
(Exact name of registrant as specified in its charter)	

			
 	 	 	
Ohio 001-15885 34-1919973

			
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)	
6070 Parkland Blvd., Mayfield Hts., Ohio 44124

			
(Address of principal executive offices)	 	(Zip Code)	

Registrant's telephone number, including area code (216) 486-4200

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§204.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

	
 	
Securities registered pursuant to Section 12(b) of the Act:

			
Title of each class	Trading Symbol(s)	Name of each exchange on which registered	
Common Stock, no par value MTRN New York Stock Exchange

Item 2.02 Results of Operations and Financial Condition.

On July 25, 2019, Materion Corporation issued a press release announcing its results for the second quarter of 2019. The press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

Exhibits.

			
Exhibit Number	 	Description of Exhibit	
99.1	 	Materion Corporation press release, dated July 25, 2019	
101.INS	 	The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
	
101.SCH	 	XBRL Taxonomy Extension Schema Document	
101.CAL	 	XBRL Taxonomy Extension Calculation Linkbase Document	
101.DEF	 	XBRL Taxonomy Extension Definition Linkbase Document	
101.LAB	 	XBRL Taxonomy Extension Label Linkbase Document	
101.PRE	 	XBRL Taxonomy Extension Presentation Linkbase Document	

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	
			
 	 	Materion Corporation	
 	 	 	
July 25, 2019	By:	/s/ Stephen Shamrock	
 	 	Stephen Shamrock	
 	 	Vice President, Corporate Controller and Investor Relations	

Exhibit Index

			
Exhibit No.	 	Description	
99.1	 	Materion Corporation press release, dated July 25, 2019	

	
	
NEWS RELEASE	

MATERION CORPORATION REPORTS RECORD SECOND QUARTER 2019 FINANCIAL RESULTS AND RAISES FULL-YEAR 2019 EARNINGS GUIDANCE

MAYFIELD HEIGHTS, Ohio - July 25, 2019 - Materion Corporation (NYSE:MTRN) today reported second quarter 2019 financial results and raised full-year 2019 earnings guidance.

Second Quarter 2019 Results

Net sales were $297.8 million; value-added sales increased 3% to a record of $194.9 million

Operating profit increased 50% compared to prior year to a record $22.8 million, or 12% of value-added sales, the tenth consecutive quarterly year-over-year increase

Diluted earnings per share were $0.75; Adjusted earnings per share were a record of $0.88, up 63% year-over-year

Earnings Guidance

The Company is raising its full-year 2019 adjusted earnings guidance to $3.10 to $3.25 per share, diluted; a 33% increase over prior-year earnings

“I am very pleased with our team’s performance, as we continue to execute on our multi-pillar strategy. We delivered record value-added sales and operating profit in the second quarter and reached a milestone of ten consecutive quarters of year-over-year value-added sales and profit

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growth,” stated Jugal Vijayvargiya, President and Chief Executive Officer. “Based on our strong first half performance and updated outlook, we are increasing full-year 2019 adjusted earnings guidance range approximately 10% above previous guidance.”

SECOND QUARTER 2019 RESULTS

Net sales for the second quarter of 2019 were $297.8 million, compared to $309.1 million in the prior year. Value-added sales of $194.9 million were a record for any quarter, up 3% from the prior year. Strong commercial execution, particularly in the energy, industrial, and consumer electronics end markets, drove the value-added sales growth and more than offset weakness in the automotive and semiconductor end markets.

Operating profit for the second quarter was $22.8 million, or 12% of value-added sales, a 50% increase compared to $15.2 million in the prior year. Operating profit reached the highest level for any quarter and marks the fourth consecutive quarter with double-digit profit margins. A combination of favorable sales mix, improved operational performance, and savings from cost reduction actions drove the record results.

Second quarter 2019 net income was $15.5 million, or $0.75 per share, diluted, including a non-cash, non-operating pension curtailment charge of $3.3 million related to freezing defined benefits for active U.S. domestic pension plan participants. Excluding the pension curtailment charge, adjusted net income was $18.1 million, or $0.88 per share, a record for any quarter.

OUTLOOK

The Company has delivered ten consecutive quarters of year-over-year value-added sales and adjusted operating profit growth. With our differentiated product portfolio, end market diversification, and multi-pillar strategy, we remain committed to achieving year-over-year growth, despite continued softness in select end markets and global economic uncertainty. Based on our first half performance and outlook, we are raising full-year 2019 adjusted earnings guidance approximately 10% from $2.80 to $3.00 per share, diluted, to $3.10 to $3.25 per share. The midpoint of the revised guidance represents a 33% increase from the prior year.

2

ADJUSTED EARNINGS GUIDANCE

It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 and 5 to this press release.

CONFERENCE CALL

Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, July 25, 2019. The conference call will be available via webcast through the Company’s website at www.materion.com or through www.InvestorCalendar.com. By phone, please dial (877) 407-0778. Callers outside the U.S. can dial (201) 689-8565. A replay of the call will be available until August 8, 2019 by dialing (877) 481-4010 or (919) 882-2331; please reference replay ID number 41630. The call will also be archived on the Company’s website.

FORWARD-LOOKING STATEMENTS

Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements, in particular, the outlook provided above. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors.

These factors include, in addition to those mentioned elsewhere herein:

•	Actual net sales, operating rates, and margins for 2019;	

		
•	The global economy, including the impact of tariffs and trade agreements;	

		
•	The impact of any U.S. Federal Government shutdowns and sequestrations;	

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•	The condition of the markets which we serve, whether defined geographically or by segment, with the major market segments being: semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center.	

		
•	Changes in product mix and the financial condition of customers;	

		
•	Our success in developing and introducing new products and new product ramp-up rates;	

		
•	Our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values;	

		
•	Our success in identifying acquisition candidates and in acquiring and integrating such businesses;	

		
•	The impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions;	

		
•	Our success in implementing our strategic plans and the timely and successful completion and start-up of any capital projects;	

		
•	Other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal financing fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company’s stock price on the cost of incentive compensation plans;	

		
•	The uncertainties related to the impact of war, terrorist activities, and acts of God;	

4

		
•	Changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations;	

		
•	The conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; and	

		
•	The risk factors as set forth in Item 1A of our 2018 Annual Report on Form 10-K.	

Materion Corporation is headquartered in Mayfield Heights, Ohio. The Company, through its wholly owned subsidiaries, supplies highly engineered advanced enabling materials to global markets. Products include precious and non-precious specialty metals, inorganic chemicals and powders, specialty coatings, specialty engineered beryllium alloys, beryllium and beryllium composites, and engineered clad and plated metal systems.

Investor Contact:                        Media Contact:                    
Stephen F. Shamrock                    John G. McCloskey        
(216) 383-4010                        (216) 383-6835
stephen.shamrock@materion.com            john.mccloskey@materion.com                     

https://materion.com
Mayfield Hts-g

5

Attachment 1
Materion Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)

	
																
 	Second Quarter Ended	 	Six Months Ended	
(In thousands except per share amounts)	June 28, 2019	 	June 29, 2018	 	June 28, 2019	 	June 29, 2018	
Net sales	$	297,843		 	$	309,085		 	$	599,284		 	$	612,552		
Cost of sales	228,249		 	247,247		 	460,378		 	492,434		
Gross margin	69,594		 	61,838		 	138,906		 	120,118		
Selling, general, and administrative expense	39,891		 	38,473		 	79,955		 	76,935		
Research and development expense	4,062		 	3,860		 	7,802		 	7,503		
Other — net	2,891		 	4,313		 	7,012		 	7,237		
Operating profit	22,750		 	15,192		 	44,137		 	28,443		
Interest expense — net	500		 	667		 	966		 	1,397		
Other non-operating expense—net	3,112		 	437		 	3,357		 	879		
Income before income taxes	19,138		 	14,088		 	39,814		 	26,167		
Income tax expense	3,598		 	2,944		 	7,368		 	4,459		
Net income	$	15,540		 	$	11,144		 	$	32,446		 	$	21,708		
Basic earnings per share:	 	 	 	 	 	 	 	
Net income per share of common stock	$	0.76		 	$	0.55		 	$	1.60		 	$	1.08		
Diluted earnings per share:	 	 	 	 	 	 	 	
Net income per share of common stock	$	0.75		 	$	0.54		 	$	1.57		 	$	1.05		
Weighted-average number of shares of common stock outstanding:	 	 	 	 	 	 	 	
Basic	20,383		 	20,221		 	20,326		 	20,178		
Diluted	20,666		 	20,593		 	20,635		 	20,583		

6

Attachment 2
Materion Corporation and Subsidiaries
Consolidated Balance Sheets

	
									
 	 	(Unaudited)	 	 	
(Thousands)	 	June 28, 2019	 	December 31, 2018	
Assets	 	 	 	 	
Current assets	 	 	 	 	
Cash and cash equivalents	 	$	74,856		 	$	70,645		
Accounts receivable	 	142,327		 	130,538		
Inventories, net	 	213,329		 	214,871		
Prepaid and other current assets	 	23,904		 	23,299		
Total current assets	 	454,416		 	439,353		
Deferred income taxes	 	1,052		 	5,616		
Property, plant, and equipment	 	913,325		 	898,251		
Less allowances for depreciation, depletion, and amortization	 	(669,861	)	 	(647,233	)	
Property, plant, and equipment—net	 	243,464		 	251,018		
Operating lease, right-of-use asset	 	26,788		 	—		
Intangible assets	 	5,213		 	6,461		
Other assets	 	15,280		 	7,236		
Goodwill	 	90,633		 	90,657		
Total Assets	 	$	836,846		 	$	800,341		
Liabilities and Shareholders’ Equity	 	 	 	 	
Current liabilities	 	 	 	 	
Short-term debt	 	$	847		 	$	823		
Accounts payable	 	41,658		 	49,622		
Salaries and wages	 	36,250		 	47,501		
Other liabilities and accrued items	 	38,482		 	33,301		
Income taxes	 	1,971		 	2,615		
Unearned revenue	 	5,829		 	5,918		
Total current liabilities	 	125,037		 	139,780		
Other long-term liabilities	 	11,419		 	14,764		
Operating lease liabilities	 	21,118		 	—		
Finance lease liabilities	 	18,325		 	15,221		
Retirement and post-employment benefits	 	30,663		 	38,853		
Unearned income	 	30,354		 	32,563		
Long-term income taxes	 	3,093		 	2,993		
Deferred income taxes	 	383		 	195		
Long-term debt	 	1,669		 	2,066		
Shareholders’ equity	 	594,785		 	553,906		
Total Liabilities and Shareholders’ Equity	 	$	836,846		 	$	800,341		

7

Attachment 3
Materion Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)

									
 	 	Six Months Ended	
(Thousands)	 	June 28, 2019	 	June 29, 2018	
Cash flows from operating activities:	 	 	 	 	
Net income	 	$	32,446		 	$	21,708		
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	 	 	 	 	
Depreciation, depletion, and amortization	 	22,607		 	18,349		
Amortization of deferred financing costs in interest expense	 	472		 	514		
Stock-based compensation expense (non-cash)	 	3,541		 	2,164		
Deferred income tax expense	 	4,578		 	429		
Pension curtailment charge	 	3,296		 	—		
Changes in assets and liabilities:	 	 	 	 	
Decrease (increase) in accounts receivable	 	(11,778	)	 	(12,060	)	
Decrease (increase) in inventory	 	1,306		 	10,428		
Decrease (increase) in prepaid and other current assets	 	(588	)	 	4,928		
Increase (decrease) in accounts payable and accrued expenses	 	(18,813	)	 	(14,189	)	
Increase (decrease) in unearned revenue	 	(88	)	 	2,132		
Increase (decrease) in interest and taxes payable	 	(1,130	)	 	2,084		
Domestic pension plan contributions	 	(3,000	)	 	(13,000	)	
Other-net	 	(2,803	)	 	5,817		
Net cash provided by operating activities	 	30,046		 	29,304		
Cash flows from investing activities:	 	 	 	 	
Payments for purchase of property, plant, and equipment	 	(13,833	)	 	(17,153	)	
Payments for mine development	 	(1,591	)	 	(3,425	)	
Proceeds from sale of property, plant, and equipment	 	15		 	27		
Net cash used in investing activities	 	(15,409	)	 	(20,551	)	
Cash flows from financing activities:	 	 	 	 	
Repayment of long-term debt	 	(397	)	 	(383	)	
Principal payments under finance lease obligations	 	(599	)	 	(425	)	
Cash dividends paid	 	(4,368	)	 	(4,137	)	
Repurchase of common stock	 	(199	)	 	—		
Payments of withholding taxes for stock-based compensation awards	 	(4,763	)	 	(2,765	)	
Net cash used in financing activities	 	(10,326	)	 	(7,710	)	
Effects of exchange rate changes	 	(100	)	 	8		
Net change in cash and cash equivalents	 	4,211		 	1,051		
Cash and cash equivalents at beginning of period	 	70,645		 	41,844		
Cash and cash equivalents at end of period	 	$	74,856		 	$	42,895		

8

Attachment 4
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Value-added Sales
(Unaudited)

																				
 	Second Quarter Ended	 	Six Months Ended	
(Millions)	June 28, 2019	 	June 29, 2018	 	June 28, 2019	 	June 29, 2018	
Net Sales	 	 	 	 	 	 	 	 	 	 	 	
Performance Alloys and Composites	$	135.2		 	 	$	129.7		 	 	$	262.3		 	 	$	248.0		 	
Advanced Materials	133.2		 	 	150.4		 	 	277.3		 	 	303.9		 	
Precision Coatings	29.4		 	 	29.0		 	 	59.7		 	 	60.7		 	
Other	—		 	 	—		 	 	—		 	 	—		 	
 Total	$	297.8		 	 	$	309.1		 	 	$	599.3		 	 	$	612.6		 	
 	 	 	 	 	 	 	 	 	 	 	 	
 Less: Pass-through Metal Cost	 	 	 	 	 	 	 	 	 	 	 	
Performance Alloys and Composites	$	19.9		 	 	$	19.6		 	 	$	37.4		 	 	$	37.6		 	
Advanced Materials	74.9		 	 	93.1		 	 	161.5		 	 	188.3		 	
Precision Coatings	6.3		 	 	5.6		 	 	14.1		 	 	13.7		 	
Other	1.8		 	 	0.9		 	 	3.7		 	 	1.8		 	
 Total	$	102.9		 	 	$	119.2		 	 	$	216.7		 	 	$	241.4		 	
 	 	 	 	 	 	 	 	 	 	 	 	
 Value-added Sales (non-GAAP)	 	 	 	 	 	 	 	 	 	 	 	
Performance Alloys and Composites	$	115.3		 	 	$	110.1		 	 	$	224.9		 	 	$	210.4		 	
Advanced Materials	58.3		 	 	57.3		 	 	115.8		 	 	115.6		 	
Precision Coatings	23.1		 	 	23.4		 	 	45.6		 	 	47.0		 	
Other	(1.8	)	 	 	(0.9	)	 	 	(3.7	)	 	 	(1.8	)	 	
 Total	$	194.9		 	 	$	189.9		 	 	$	382.6		 	 	$	371.2		 	
 	 	 	 	 	 	 	 	 	 	 	 	
Gross Margin	 	% of VA	 	 	% of VA	 	 	% of VA	 	 	% of VA	
Performance Alloys and Composites	$	41.6		36%	 	$	31.1		28%	 	$	80.8		36%	 	$	58.9		28%	
Advanced Materials	20.2		35%	 	21.3		37%	 	42.2		36%	 	42.1		36%	
Precision Coatings	10.3		45%	 	9.1		39%	 	19.7		43%	 	19.1		41%	
Other	(2.5	)	—	 	0.3		—	 	(3.8	)	—	 	—		—	
 Total	$	69.6		36%	 	$	61.8		33%	 	$	138.9		36%	 	$	120.1		32%	
 	 	 	 	 	 	 	 	 	 	 	 	
Operating Profit	 	% of VA	 	 	% of VA	 	 	% of VA	 	 	% of VA	
Performance Alloys and Composites	$	19.3		17%	 	$	12.3		11%	 	$	38.3		17%	 	$	22.2		11%	
Advanced Materials	6.1		10%	 	5.6		10%	 	13.2		11%	 	11.5		10%	
Precision Coatings	3.9		17%	 	2.2		9%	 	6.0		13%	 	5.6		12%	
Other	(6.5	)	—	 	(4.9	)	—	 	(13.4	)	—	 	(10.8	)	—	
 Total	$	22.8		12%	 	$	15.2		8%	 	$	44.1		12%	 	$	28.5		8%	

9

	
																				
 	Second Quarter Ended	 	Six Months Ended	
(Millions)	June 28, 2019	 	June 29, 2018	 	June 28, 2019	 	June 29, 2018	
Special Items	 	 	 	 	 	 	 	 	 	 	 	
Performance Alloys and Composites	$	—		 	 	$	—		 	 	$	—		 	 	$	—		 	
Advanced Materials	—		 	 	—		 	 	—		 	 	—		 	
Precision Coatings	—		 	 	—		 	 	—		 	 	—		 	
Other	—		 	 	—		 	 	—		 	 	0.7		 	
 Total	$	—		 	 	$	—		 	 	$	—		 	 	$	0.7		 	
 	 	 	 	 	 	 	 	 	 	 	 	
Operating Profit Excluding Special Items	 	% of VA	 	 	% of VA	 	 	% of VA	 	 	% of VA	
Performance Alloys and Composites	$	19.3		17%	 	$	12.3		11%	 	$	38.3		17%	 	$	22.2		11%	
Advanced Materials	6.1		10%	 	5.6		10%	 	13.2		11%	 	11.5		10%	
Precision Coatings	3.9		17%	 	2.2		9%	 	6.0		13%	 	5.6		12%	
Other	(6.5	)	—	 	(4.9	)	—	 	(13.4	)	—	 	(10.1	)	—	
 Total	$	22.8		12%	 	$	15.2		8%	 	$	44.1		12%	 	$	29.2		8%	

The cost of gold, silver, platinum, palladium, and copper is passed through to customers and, therefore, the trends and comparisons of net sales are affected by movements in the market price of these metals. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales.

The Company’s pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company’s results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company’s intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals.

10

Attachment 5
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measures - Profitability
(Unaudited)

	
																
 	Second Quarter Ended	 	Six Months Ended	
(Millions except per share amounts)	June 28, 2019	 	June 29, 2018	 	June 28, 2019	 	June 29, 2018	
GAAP as Reported	 	 	 	 	 	 	 	
Net Sales	$	297.8		 	$	309.1		 	$	599.3		 	$	612.6		
Operating profit	22.8		 	15.2		 	44.1		 	28.5		
Net income	15.5		 	11.1		 	32.4		 	21.7		
EPS - Diluted	$	0.75		 	$	0.54		 	$	1.57		 	$	1.05		
 	 	 	 	 	 	 	 	
Operating Profit Special Items	 	 	 	 	 	 	 	
Legacy legal & environmental costs	—		 	—		 	—		 	0.7		
Operating Profit Special Items - net of tax	$	—		 	$	—		 	$	—		 	$	0.6		
Other Non-Operating Expense Special Items - net of tax	$	2.6		 	$	—		 	$	2.6		 	$	—		
Tax Special Item	$	—		 	$	—		 	$	—		 	$	(0.6	)	
 	 	 	 	 	 	 	 	
Non-GAAP Measures - Adjusted Profitability	 	 	 	 	 	 	 	
Value-added (VA) sales	$	194.9		 	$	189.9		 	$	382.6		 	$	371.2		
Operating profit	22.8		 	15.2		 	44.1		 	29.2		
Operating profit % of VA	11.7	%	 	8.0	%	 	11.5	%	 	7.9	%	
Net income	18.1		 	11.1		 	35.0		 	21.7		
EPS - Diluted	$	0.88		 	$	0.54		 	$	1.70		 	$	1.05		

In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 4, we have adjusted the results for certain special items such as non-cash pension charges, legacy legal and environmental costs, and certain income tax items from the applicable GAAP financial measure. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations.

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Attachment 6
Materion Corporation and Subsidiaries
Value-added sales by Market
(Unaudited)

	
																						
 	Second Quarter Ended	 	 	 	Six Months Ended	 	 	
(Millions)	June 28, 2019	 	June 29, 2018	 	 % Change	 	June 28, 2019	 	June 29, 2018	 	% Change	
Materion Corporation	 	 	 	 	 	 	 	 	 	 	 	
Industrial	$	36.4		 	$	33.7		 	8.0	 %	 	$	70.0		 	$	66.8		 	4.8	 %	
Semiconductor	35.7		 	39.0		 	(8.5	)%	 	73.1		 	76.0		 	(3.8	)%	
Aerospace and Defense	29.6		 	29.5		 	0.3	 %	 	60.1		 	51.0		 	17.8	 %	
Consumer Electronics	19.2		 	18.0		 	6.7	 %	 	33.4		 	35.6		 	(6.2	)%	
Energy	19.1		 	15.9		 	20.1	 %	 	37.4		 	32.7		 	14.4	 %	
Telecom and Data Center	16.1		 	15.0		 	7.3	 %	 	31.2		 	27.6		 	13.0	 %	
Automotive	14.8		 	19.3		 	(23.3	)%	 	31.8		 	38.7		 	(17.8	)%	
Other	24.0		 	19.5		 	23.1	 %	 	45.6		 	42.8		 	6.5	 %	
    Total	$	194.9		 	$	189.9		 	2.6	 %	 	$	382.6		 	$	371.2		 	3.1	 %	
Performance Alloy and Composites	 	 	 	 	 	 	 	 	 	 	 	
Industrial	$	26.0		 	$	25.7		 	1.2	 %	 	$	50.0		 	$	51.4		 	(2.7	)%	
Semiconductor	1.3		 	1.3		 	—	 %	 	3.2		 	2.4		 	33.3	 %	
Aerospace and Defense	24.3		 	24.1		 	0.8	 %	 	49.3		 	40.3		 	22.3	 %	
Consumer Electronics	14.7		 	12.9		 	14.0	 %	 	25.3		 	26.1		 	(3.1	)%	
Energy	10.0		 	8.5		 	17.6	 %	 	19.9		 	15.2		 	30.9	 %	
Telecom and Data Center	16.0		 	14.9		 	7.4	 %	 	31.0		 	27.4		 	13.1	 %	
Automotive	12.7		 	17.0		 	(25.3	)%	 	28.2		 	34.6		 	(18.5	)%	
Other	10.3		 	5.7		 	80.7	 %	 	18.0		 	13.0		 	38.5	 %	
    Total	$	115.3		 	$	110.1		 	4.7	 %	 	$	224.9		 	$	210.4		 	6.9	 %	
Advanced Materials	 	 	 	 	 	 	 	 	 	 	 	
Industrial	$	6.6		 	$	4.8		 	37.5	 %	 	$	12.1		 	$	9.5		 	27.4	 %	
Semiconductor	34.3		 	37.3		 	(8.0	)%	 	69.7		 	72.7		 	(4.1	)%	
Aerospace and Defense	0.5		 	0.4		 	25.0	 %	 	1.2		 	1.0		 	20.0	 %	
Consumer Electronics	0.1		 	0.1		 	—	 %	 	0.2		 	0.2		 	—	 %	
Energy	9.1		 	7.4		 	23.0	 %	 	17.6		 	17.5		 	0.6	 %	
Telecom and Data Center	0.1		 	0.1		 	—	 %	 	0.2		 	0.2		 	—	 %	
Automotive	1.7		 	1.8		 	(5.6	)%	 	3.0		 	3.4		 	(11.8	)%	
Other	5.9		 	5.4		 	9.3	 %	 	11.8		 	11.1		 	6.3	 %	
    Total	$	58.3		 	$	57.3		 	1.7	 %	 	$	115.8		 	$	115.6		 	0.2	 %	
Precision Coatings	 	 	 	 	 	 	 	 	 	 	 	
Industrial	$	3.8		 	$	3.2		 	18.8	 %	 	$	8.0		 	$	5.9		 	35.6	 %	
Semiconductor	0.1		 	0.4		 	(75.0	)%	 	0.2		 	1.0		 	(80.0	)%	
Aerospace and Defense	4.8		 	5.0		 	(4.0	)%	 	9.6		 	9.6		 	—	 %	
Consumer Electronics	4.4		 	5.0		 	(12.0	)%	 	7.9		 	9.3		 	(15.1	)%	
Energy	—		 	—		 	—	 %	 	—		 	—		 	—	 %	
Telecom and Data Center	—		 	—		 	—	 %	 	—		 	—		 	—	 %	
Automotive	0.4		 	0.5		 	(20.0	)%	 	0.6		 	0.7		 	(14.3	)%	
Other	9.6		 	9.3		 	3.2	 %	 	19.3		 	20.5		 	(5.9	)%	
    Total	$	23.1		 	$	23.4		 	(1.3	)%	 	$	45.6		 	$	47.0		 	(3.0	)%	
 	 	 	 	 	 	 	 	 	 	 	 	
Eliminations	$	(1.8	)	 	$	(0.9	)	 	 	 	$	(3.7	)	 	$	(1.8	)	 	 	

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