Materion Corporation (NYSE:MTRN) Q4 2019 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 09:00 am ET
Greetings. Welcome to the Materion year-end 2019 Earnings Conference Call. [Operator Instructions] I will now turn the conference over to Stephen Shamrock. Thank you. You may begin.
Stephen F. Shamrock
Good morning. This is Steve Shamrock, Vice President, Corporate Controller and Investor Relations. With me today is Jugal Vijayvargiya, President and Chief Executive Officer; and Joe Kelley, Vice President and Chief Financial Officer. Our format for today's conference call is as follows: Jugal Vijayvargiya will provide opening comments on the Company's 2019 performance and the outlook as we move forward into 2020. Following Jugal, Joe Kelley will review detailed financial results for the quarter and full-year highlights, and then we will open up the call for questions.
Before we begin, let me remind investors that any forward-looking statements made in this announcement, including those in the outlook section and during the question-and-answer portion, are based on current expectations. The Company's actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. Those factors are listed in the earnings press release we issued this morning. Additionally, comments with regard to operating profit, net income and earnings per share reflect the adjusted GAAP numbers shown in attachment number five in this morning's press release. The adjustments are made in both the current year and prior-year periods for comparative purposes and remove special items, non-cash pension charges, and certain income tax adjustments.
And now I'll turn it over to Jugal for his comments.
Jugal K. Vijayvargiya
Thanks, Steve, and welcome everyone. I'm pleased to report another year of record financial results. We delivered earnings of $3.19 a share, that's a 34% year-over-year improvement and it's the third consecutive year of more than 30% earnings growth. Our PAC and PC businesses achieved record operating profit margins. All three of our businesses reported double-digit operating profit margins for the second year. I'm very proud of our global team for quickly embracing the One Materion multi-pillar strategy to deliver transformational financial performance over the past three years.
We finished the year at 11% operating profit margin. That's a 540 basis point improvement over the last three years. ROIC came in at 15%, a 900 basis point improvement and in 2019, we generated approximately $100 million of operating cash flow. As you can see from these metrics, we have emerged as an advanced materials company. Our global team is fully engaged and remains enthusiastic to deliver long-term sustainable profitable growth leveraging our differentiated product portfolio and unique technical capabilities. Joe will cover additional financial details for the quarter and the full year.
Now I will provide an update on current business conditions. We had a very successful 2019. Despite challenging market conditions, which intensified in the fourth quarter in several of the end markets. Trade and tariff situation with China continue to be a drag on sales, particularly in the telecom and data center end market. We continue to see the effects of inventory destocking and sluggish demand in several other end markets, including