Net sales for the second quarter of 2010 and 2009 for the Engineering Services segment were as follows:
|Three Months Ended June 30,|
|Category||2010||% of Total||2009||% of Total|
|($ in millions)|
|Corporate and regional aircraft||$5.7||31.7%||$4.6||20.4%|
|Large commercial aircraft||7.7||42.8%||10.2||45.1%|
Net sales of Corporate and Regional Aircraft services grew by $1.1 million, driven by growth in support for the Mitsubishi Regional Jet and Bombardier. Net sales declined for large commercial aircraft as the design matured for the 747-8. These declines were partially offset by increases on the A350 and 787. Military sales were down $3.2 million, primarily due to reduced staffing on the Sikorsky CH-53 and the winding down of certain Lockheed programs.
Gross profit for the second quarter of 2010 was $13.2 million or 23.6 percent, compared to $13.4 million or 21.3 percent in the second quarter of 2009. The Aerostructures segment generated gross profit of $10.2 million or 26.7 percent of sales in the second quarter of 2010, up from $9.0 million or 22.3 percent of sales in the second quarter of 2009. This improvement in gross profit was primarily attributable to increased efficiency at our fabrication facilities. During the second quarter of 2009, production levels had dropped as the segment reduced inventory levels, resulting in shorter work weeks and inefficient production processes. The Engineering Services segment generated a gross profit of $3.1 million or 17.2 percent of sales in the quarter ended June 30, 2010, versus $4.4 million or 19.5 percent of net sales for the second quarter of 2009. This decline was attributable to the lower revenue levels providing less coverage of fixed costs and the establishment of a reserve for potential billing rate reductions on a recently completed contract.