SANTA ANA, CA – Ducommun reported fiscal first quarter Electronic Systems segment net revenue was $99.1 million, up 1% year-over-year.

The increase is attributed to $7.4 million higher revenue within the company’s military and space end-use markets due to higher build rates on other military and space platforms, partially offset by $3.1 million lower revenue within the commercial aerospace end-use markets due to lower build rates on large aircraft platforms, regional and business aircraft platforms, and other commercial aerospace platforms.

Electronic Systems operating income for the quarter ended Apr. 3 was $12.5 million, or 12.6% of revenue, compared to $15.1 million, or 15.4% of revenue, for the comparable quarter in 2020. The year-over-year decrease of $2.6 million was due to unfavorable manufacturing volume and unfavorable product mix, partially offset by lower compensation and benefit costs.

Ducommun’s total net revenue for the fiscal first quarter was $157.2 million, down 9.4% year-over-year. Net income was $6.7 million, a decrease of 15.2% compared to the fiscal first quarter of 2020. Operating income was $10.6 million, or 6.8% of revenue, compared to $13.6 million, or 7.8% of revenue, in the comparable period last year.

During the quarter, net cash used in operations was $23.4 million, compared to $12 million during the fiscal first quarter of 2020.

“Our first quarter performance continued to illustrate the resilience of Ducommun’s product portfolio and operating strength, especially in our Defense sector, which is building the foundation for a solid year ahead and a return to revenue growth in 2021,” said Stephen G. Oswald, chairman, president and CEO. “Military demand once again served to offset weakness in our commercial business, and continued overall strong product mix resulted in solid gross margins and adjusted EBITDA across the company. Looking ahead, we are optimistic that increasing build rates in the second half of 2021 and 2022 will have a positive impact on key aircraft platforms across our customers such as Boeing, Airbus and Gulfstream. We believe pent-up demand in air travel and vaccination progress will ultimately drive increased shipments across a host of programs where Ducommun has a strong market position. While still early, 2021 looks promising for the aerospace industry, and Ducommun is uniquely positioned to benefit as the economy continues to strengthen.”

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