ORANGE COUNTY EARNINGS

Ceradyne Inc.: The Costa Mesa maker of technical ceramics reported that net income for the second quarter fell 57% to $326,000, or 4 cents a share, from $759,000, or 10 cents a share, a year ago. The company attributed the decline to a defective raw material that caused a temporary work interruption. Sales were down 14% to $6.3 million from $7.3 million. First-half net income dropped 22% to $809,000, or 10 cents a share, from $1 million, or 13 cents a share. Sales declined 1% to $13.7 million from $13.9 million.