Ceradyne Inc.: The Costa Mesa maker of...

Ceradyne Inc.: The Costa Mesa maker of technical ceramic products and components said net income for the third quarter declined 53% to $508,000, or 6 cents a share, from $1.1 million, or 14 cents a share, a year ago. Sales were down 4% to $7.1 million from $7.4 million.

For the first nine months, net income dropped 43% to $1.6 million, or 19 cents a share, from $2.8 million, or 35 cents a share, for the comparable three quarters of 1996. Sales were up 1% to $21 million from $20.7 million.

The company said earnings were affected by costs in starting production of structural ceramics for semiconductor equipment and by a one-time charge of $220,000 related to settling litigation.