Ceradyne Inc. Expects Loss of $2.5 Million

Ceradyne Inc., a Costa Mesa ceramic components manufacturer that last month ousted its president, said it expects to report a loss of $2.5 million for the third quarter ended Sept. 30.

The company attributed most of the loss to a decline in shipments during the first half of 1987. The company said shipments during each of the first two quarters were about $5.7 million, down from $7 million during the corresponding periods in 1986.

Ceradyne, in a prepared statement, also blamed the firm’s “continued transition from a primarily defense-related products business to a broader-based product line.” Also, the company said a devaluation of its investment portfolio and a reserve established for premium refunds for workers compensation contributed to the loss.

Ceradyne said that based in part on $8.3 million in new orders during the third quarter and a $16 million order backlog it expects to return to profitability in 1988.

Last week, Ceradyne announced without explanation that John J. Carberry, who served as company president since January, had been “separated” from the firm.