Armor supplier seals $14-million deal with Army

Paul Clinton

A ceramics manufacturer and war supplier said Tuesday that it has

signed a $13.8-million contract with the U.S. Army to aid soldiers

with its body armor.

The lucrative deal comes on the heels of two other contracts over

the past four months that bring Ceradyne Inc.’s total revenue in that

period to $26.5 million. Shipments are scheduled to begin in June and

be completed by the end of the year.

“Everyone at Ceradyne is excited over receiving the largest single

order to date of any kind for two reasons,” said Joel Moskowitz, the

company’s chief executive. “First, our company takes great pride in

directly saving American lives through our soldiers’ use of

Ceradyne’s lightweight ceramic armor; and secondly, this order

provides visibility and continuity for our production area.”

In December, the company signed a $9-million deal with the Army to

provide the ballistic armor plates that are inserted into the front

and rear of Kevlar vests. Ceradyne inked a $3.7-million contract in

February.

Ceradyne’s personnel armor, made of boron carbide, is the

lightest, hardest ceramic known.

Last year, 29 U.S. soldiers survived machinegun attacks overseas

with armor provided by Ceradyne. Moskowitz received a letter from an

Army ranger stationed in Afghanistan who said he was shot in the back

with a Russian-made AK-47 assault rifle. The bullet was absorbed by

the ballistic armor.

In addition to the body armor, Ceradyne produces ballistic siding

for the H-60 Black Hawk and other military helicopters being used in

Iraq.

Over the past several years, Moskowitz has seen orders for his

ceramic-based armors increase substantially. In 2002, the company

grew sales 35%, from $45.3 million to a record $61.2 million.

The company, which has been in Costa Mesa since 1975, is one of

three in the city that have been supplying hardware to the military.

Argo-Tech Corp.’s Costa Mesa branch has been supplying fuel-valve

equipment, and ICN Pharmaceuticals has been providing a nerve agent.

After Wednesday’s announcement, shares of the Ceradyne’s stock,

which is traded on Nasdaq, rose 11 cents, or 1.18%, to close at $9.48.