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Ceradyne CEO Joel Moskowitz on the outlook for the company’s defense and energy businesses.
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-- January 1 the fiscal -- tax cuts are ending extended unemployment benefits are ending an automatic spending cuts will be triggered.
That includes a 55 billion dollar reduction per year to the defense industry.
Our next defense manufacturers expanding its business and R&D jolt Moskowitz is the chairman and CEO Ceradyne.
He joins us now in a Fox Business exclusive and build the largest single -- -- shareholder right.
I -- you care about what happened I -- -- -- -- and it was up 1% by the way what -- that that you're holding -- that's us -- -- -- that's related energy now that sure is and that's the future as we see yet.
Is this is callable loaded up with you know they're they're got this is called the petrol surround.
Ceramics and screen.
And it's a billion dollar market that we've been sent to this product to keep the sand out of the oil town -- That's a big problem.
Usually solved by using a stainless steel but the sandy -- through the steel not through the ceramics.
That's exactly right that's -- I could sell your product you could do that because that's the whole reason to you're set.
It's an erosion corrosion resistant.
We don't even know how longer -- last of the longest we have now we've never had a failure -- -- this is two and a half years in the North Sea.
No stand -- a lot of oil coming out.
So actually the question is how is are these defense cuts gonna affect your business -- -- industry well.
First of all our defense business which peaked in 2007.
Where are we we actually had sold 002 billion dollars worth of our invented ceramic armor.
We -- may be 101000 American lives.
And it was clear this was going to be going down so now.
We believe it'll be about 200 million whether sequestration.
Affects us it doesn't is not clear.
But there is a letter from congress that dictates.
That -- should always be what should call us sustaining.
The business prospect I mean we are -- So if that if the United States feels that they're gonna wanna put.
Armor on -- soldiers.
Or Marines we're gonna get your flexible enough she can switch from that business to -- one business though that is not doing so well solar.
-- and a solar what is what do you think of the future of solar and and particularly regarding your company.
Yeah we know a lot about solar we have a major facade to facilities in China.
We made a lot of money in solar we had developed this unique.
It's called a crucible where -- melted -- -- you're getting out of it now right.
They're getting outfit -- -- this they get it yeah we're still a leader in that product.
But -- there's so much over capacity in China.
Odds that we have no choice but to cut back and so we're gonna reduce our costs were going from a product line that was the most profitable as a percentage to a product line we're actually losing money right now you are -- -- solar has.
And we're gonna have to leave -- -- -- but just a couple words are you optimistic about the future or you somewhat timid.
I'm very optimistic because the demand.
Is going up by ten to 25% a year and will continue until Moskowitz Ceradyne thank you very much for coming in July thanks for having me.
