SANTA ANA, CA – Ducommun reported its Electronic Systems segment net revenue was $84.5 million in the second quarter, down 3.3% year-over-year.  

The segment experienced $5.4 million higher revenue within the commercial aerospace end-use markets due to increased build rates, which favorably impacted the company’s large aircraft platforms. Revenue for Electronic Systems was partially offset a $300,000 drop in revenue within the military and space end-use markets and a $2.4 million decline within the industrial end-use markets.

For the quarter ended June 30, Electronic Systems’ operating income was $8.7 million, or 10.3% of revenue, compared to $8.9 million, or 10.9% of revenue, for the comparable quarter in 2017.

Ducommun’s total second quarter revenue increased 9.9% to $154.8 million, primarily due to higher commercial aerospace sales and marginally improved military and space revenue, partially offset by a $2.4 million drop in the industrial markets.

Net income was $1.6 million, a decrease of 58% year-over-year. During the quarter, the firm recorded $5.4 million in restructuring charges.  Operating income was $5.6 million, or 3.6% of revenue, compared to $6.6 million, or 4.7% of revenue, last year.

The company ended the quarter with a backlog of $823 million.

During the quarter, Ducommun generated $15.9 million of cash flow from operations compared to $3 million during the second quarter 2017.

“I am very pleased with the second quarter results, as it demonstrated once again the fact that Ducommun is on the road to improved financial performance, benefiting from numerous initiatives put in place since my arrival 18 months ago,” said Stephen G. Oswald, chairman, president and CEO. “Revenue rose 9.9% year-over-year; our backlog remains strong, and operating margins net of adjustments expanded 100 basis points versus 2017's comparable period.

“Our company-wide restructuring program is on track to reduce total plant footprint roughly 16% this year and result in estimated savings of $14 million annually.”

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