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PRESS RELEASE : APRIL 30, 2007
DUCOMMUN INCORPORATED REPORTS RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2007
Sales for the first quarter of 2007 were $88.1 million, compared to $72.2 million for the first quarter of 2006. Net income for the first quarter of 2007 was $3.8 million, or $0.37 per diluted share, compared to net income of $2.8 million, or $0.27 per diluted share, for the comparable period last year.
Sales for the first quarter of 2007 increased 22% from the same period last year primarily due to a strong increase in commercial sales. The Company’s mix of business in the first quarter of 2007 was approximately 59% military, 38% commercial and 3% space, compared to 67% military, 32% commercial and 1% space in the first quarter of 2006.
Gross profit, as a percentage of sales, increased to 21.0% in the first quarter of 2007 from 20.1% in the first quarter of 2006. Selling, general and administrative (SG&A) expenses, as a percentage of sales, increased to 13.9% in the first quarter of 2007 from 13.4% in the first quarter of 2006. The increase in SG&A expenses, as a percent of sales, was primarily due to higher bonus accruals in 2007 and the expenses of the WiseWave and CMP businesses which were acquired in the second and third quarters of 2006, respectively.
Net income for the first quarter of 2007 increased 38% from the first quarter of 2006 primarily due to the reasons stated above and a lower effective tax rate, partially offset by higher interest expense in the first quarter of 2007. The Company’s effective tax rate for the first quarter of 2007 was 32.1% compared to 36.7% in the first quarter of 2006.
Joseph C. Berenato, chairman, president and chief executive officer, stated, “Our strong operating performance this quarter reflects both the strength of our markets and the benefits we are seeing from our Lean Six Sigma activities. We are focused on improving our technological and operational capabilities and augmenting these efforts with acquisitions which are complementary to our existing businesses. Finally, we continue to drive our key goals of One Company, Operational Excellence and Profitable Growth in order to achieve our ultimate goal of becoming more important to our key customers.”
Founded in 1849, Ducommun Incorporated provides engineering and manufacturing services to the aerospace and defense industry.
A teleconference with Joseph C. Berenato, the Company’s chairman, president and chief executive officer, and Gregory A. Hann, the Company’s
vice president, chief financial officer and treasurer, will be held today at 7:30 AM PT (10:30 AM ET). To participate in the teleconference,
please call 866-202-1971 (international 617-213-8842) approximately ten minutes prior to the conference time stated above. The participant
passcode is 31352742. Mr. Berenato and Mr. Hann will be speaking on behalf of the company and anticipate the meeting and Q&A period to last
approximately 40 minutes. This call is being webcast by Thomson/CCBN and can be accessed at
Thomson/CCBN
Conference call replay will be available from the Company’s web site at www.ducommun.com.
The statements made in this press release include forward-looking statements that involve risks and uncertainties. The Company’s future
financial results could differ materially from those anticipated due to the Company’s dependence on conditions in the airline industry, the
level of new commercial aircraft orders, production rates for Boeing commercial aircraft, the C-17 and Apache helicopter rotor blade programs,
the level of defense spending, competitive pricing pressures, manufacturing inefficiencies, start-up costs and possible overruns on new contracts,
technology and product development risks and uncertainties, product performance, risks associated with acquisitions and dispositions of businesses
by the Company, increasing consolidation of customers and suppliers in the aerospace industry, possible goodwill impairment, availability of raw
materials and components from suppliers, and other factors beyond the Company’s control. See the Company’s Form 10-K for the year ended December
31, 2006 for a
more detailed discussion of these and other risk factors and contingencies.
[Financial Table Follows] DUCOMMUN IN COMPARATIVE DATA CONSOLIDATED INCOME STATEMENT Net Sales $72,158,000 Operating Costs and Expenses: Cost of Goods
Sold 57,641,000 Selling, General
& Administrative Expenses 9,636,000 Total 67,277,000 Operating Income 4,881,000 Interest Expense, Net (515,000) Income Tax Expense, Net (1,604,000) Net Income $ 2,762,000 Earnings Per Share:
Basic Earnings Per Share $ 0.27 Diluted Earnings
Per Share $ 0.27 Weighted Averaged Number of Common Shares Outstanding: Basic 10,133,000 Diluted 10,213,000
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