Ducommun Incorporated (NYSE:DCO) today reported results for its second quarter and six months ended July 2, 2011.
- Successfully completed LaBarge acquisition, bolstering the Company’s growth outlook
- Net sales increased 5% for the second quarter of 2011 versus the second quarter of 2010, reflecting stronger shipment of commercial products
- Net income, excluding transaction-related expenses, was $0.45 per fully diluted share
- Generated $12.5 million in cash flow from operations in second quarter 2011, excluding transaction-related costs
As previously announced, on June 28, 2011 the Company completed its acquisition of LaBarge, Inc. (“LaBarge”) and combined the entity with Ducommun Technologies to form Ducommun LaBarge Technologies (“DLT”).
Sales for the second quarter of 2011 rose 5% to $108.0 million, as compared to $102.9 million for the second quarter of 2010, reflecting increased sales from commercial aerospace products. Due to transaction-related expenses, the Company incurred a net loss for the second quarter of 2011 of $(3.0) million, or $(0.28) per fully diluted share, compared to net income of $5.7 million, or $0.53 per diluted share, for the comparable period last year. The second quarter 2011 results include pre-tax transaction-related expenses of $10.9 million ($7.8 million after tax, or $0.73 per fully diluted share). Excluding transaction-related expenses, net income was $4.8 million, or $0.45 per fully diluted share. During the quarter, the Company generated $12.5 million of cash flow from operations, excluding $10.1 million of transaction-related costs.
“We remained focused on improving operating performance this quarter even as we worked diligently to close the LaBarge acquisition on time. Ducommun benefitted from strengthening demand, with top line growth driven by increased commercial shipments across a wide variety of platforms,” said Anthony J. Reardon, president and chief executive officer. “Commercial revenue represented 47% of our total business this period, up significantly from last year’s 40%. In addition, we saw our gross margins increase sequentially from the first quarter, a trend we believe will continue going forward. The second half of 2011 is looking to be one of growth for Ducommun, and the LaBarge acquisition strengthens our product portfolio heading into 2012.”