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ST. LOUIS, Nov. 8, 2010 (GLOBE NEWSWIRE) -- LMI Aerospace, Inc. (Nasdaq:LMIA) today announced financial results for the third quarter 2010.
Third Quarter 2010 Highlights
Sales of $52.3 million, down from $58.7 million the prior year, and down from $55.9 million in the second quarter 2010.
Free cash flow of $4.7 million, resulting in payoff of revolving credit balance.
Gross margins up from the prior year, but down from the second quarter of 2010 because of front end cost on a new program in our Mexicali facility.
Third Quarter 2010 Results
Sales for the third quarter 2010 decreased 11.0 percent to $52.3 million, from $58.7 million in the third quarter of 2009. The Aerostructures and Engineering Services segments each experienced declines in sales when compared with the prior year quarter. Net income for the third quarter of 2010 was $2.6 million, or $0.23 per diluted share, down from $2.8 million or $0.25 per diluted share in the 2009 period.
"Sales for our Aerospace segment were below expectations and resulted from delays in shipment of Boeing 747-8 components and assemblies due to a slide in the introduction date for this aircraft, as well as a temporary decline in orders for Boeing 737 products," said Ronald S. Saks, Chief Executive Officer of LMI. "In addition, sales of Gulfstream G450 and G550 products were down because of a planned two-week shutdown in July and due to delays in receipt of orders for new work that commenced in the second quarter of 2010. We do expect shipments for these models other than the Boeing 747-8 to return to normal production rate levels in the fourth quarter of 2010. Also, we expect a combination of awards recently received for military and large commercial aircraft products business should result in higher sales at our Aerostructures segment in 2011," Saks said. "Although sales at our Engineering Services segment were in line with expectations, we anticipate that a combination of new customer awards, including work on the HondaJet, Boeing 787-9 and Airbus A350, and expected awards on some major industry programs should also improve sales in 2011 for this segment. "