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Ceradyne's Armor Isn't Bear-Proof

Shares of the maker of ceramic protective equipment for U.S. soldiers tumbled on Tuesday after it slashed its revenue and profit outlook

A drop in casualties among U.S. soldiers in Iraq and improving odds for a pullback in the U.S. occupation forces have the market worried about Ceradyne's (CRDN) ongoing profitability given the company's heavy reliance on defense-related products.

The stronger, lightweight ceramic body armor that Ceradyne has been making for U.S. soldiers over the past year is arguably one reason that fewer soldiers are dying in Iraq. The enhanced body inserts are able to withstand an AK47 bullet and the fact that the armor weighs less than metal plates makes it very attractive.