Thursday, Brush Engineered Materials Inc. (BW: News ) said it slashed its full-year earnings forecast, mainly due to lower order rates and the impact of Hurricane Ike which has temporarily reduced shipments to the oil & gas market.

The company now expects full-year earnings to be in the range of $1.15 to $1.30 per share, including the negative effect of the earlier announced charges taken in the first and second quarters mainly related to the media market factors. While announcing its second quarter results, Brush Engineered predicted earnings of $1.45 to $1.70 per share for the year. Three analysts, on average polled by First Call/Thomson Financial expect earnings of $1.80 per share.

Excluding charges, the operating run rate for the year is expected to be in the range of $1.45 to $1.60 per share, down approximately $0.30 to $0.40 per share from the previously provided guidance.

In the media market, the company fails to meet its third quarter sales expectations and currently expects that its fourth quarter results will also fall short of expectations due to two recent developments. While Brush Engineered was compelled to redevelop a product as one of its key customers changed specifications for the oxide layer, problem with a raw material supplier forced the company to temporarily suspend shipments of a ruthenium -based material to another customer.

These factors are currently expected to be resolved but will result in lower than earlier expected shipments into the media market through the fourth quarter and into the first quarter of 2009.

The weakness in the telecommunications and computer and automotive electronics markets decreased expected demand from both the Specialty Engineered Alloys and Engineered Materials Systems segments. Meanwhile, the company continues to experience strong demand from the defense, medical, optics, solar and LED markets and this is expected to continue into 2009 partially offsetting the weakness from its other markets.

Brush Engineered said it has also been affected by the impact of Hurricane Ike which has temporarily reduced shipments to the oil & gas market and the Boeing strike which is reducing shipments to the commercial aerospace market.

Though disappointed by the recent developments, Richard Hipple, Chairman, President and CEO, stated, "Our long term-growth expectations are unchanged and we continue to generate strong cash flows which will continue to allow us the flexibility to support the expected organic growth and pursue attractive niche acquisitions."

BW closed Wednesday's trading at $17.89. In the pre-market, the shares tumbled 9% or $1.59, to $16.30. – RTTNews