This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ducommun To Record Fourth Quarter 2013 Charges

Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today announced that it expects to record pre-tax program-related charges of approximately $14.1 million in the 2013 fourth quarter, partially offset by reduced accrued compensation expenses of approximately $5.3 million. The program-related charges and compensation expense reductions are expected to decrease net income by approximately $5.5 million, or approximately $0.51 per diluted share, in the fourth quarter; the number of shares used in computing diluted earnings per share is approximately 10.9 million.

The program-related charges are for contracts in the Ducommun AeroStructures segment on the Embraer Legacy 450/500 aircraft and the Boeing 777 wing tip. The charge for the Embraer aircraft contracts consists of a $5.7 million asset impairment charge (principally tooling and development costs), a $1.9 million inventory write-off, and a $3.9 million contract loss reserve. The charge for the Boeing contract consists of a $1.3 million asset impairment charge (principally tooling) and a $1.3 million contract loss reserve. These charges result from estimated cost overruns for the development and production phases of the Embraer aircraft contracts, as well as difficulties in achieving previously-anticipated cost reductions for both the Embraer and Boeing contracts.

Anthony J. Reardon, the Company's chairman and chief executive officer, stated, “We are clearly disappointed in the execution of these programs. To expand our content on such platforms, we bid somewhat aggressively and, unfortunately, did not meet our planned productivity improvements at the required pace. Moreover, the programs' profitability problems were exacerbated by customer-generated product changes. While discussions with Boeing and Embraer continue, we’ve been unable to resolve these issues with equitable price adjustments to date. That said, we have implemented more rigorous program management protocols to improve our product development process, as well as our change control and pricing procedures, to mitigate such risks going forward.”

Recognition of additional losses in future periods continues to be a risk and will depend upon numerous factors including the Company’s sales forecast, the ability to achieve expected cost reductions, and the ability to resolve claims and assertions with the aforementioned customers.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs