SANTA ANA, CA – Ducommun reported fourth quarter electronics systems net revenue was $85.3 million, up 10.5% year-over-year.
The increase is attributed to $6.8 million higher revenue within commercial aerospace end-use markets, due to additional content and higher build rates on the company’s large aircraft platforms, and $4.5 million higher revenue within the military and space end-use markets due to increased demand, which favorably impacted the company’s missile platforms.
Growth in this segment was partially offset by $3.2 million lower revenue within industrial end-use markets.
Electronic systems operating income for the fourth quarter was $7.5 million, or 8.7% of revenue, compared to $6.9 million, or 8.9% of revenue, for the comparable quarter in 2017.
Ducommun posted total fourth quarter net revenue of $164.2 million, an increase of 15.4% year-over-year.
Net income was $700,000, compared to $9.5 million in the fourth quarter of 2017. Operating income was $6.3 million, or 3.8% of revenue, compared to an operating loss of $2.6 million in the comparable period the prior year.
“I am happy to report that Ducommun had a strong finish to 2018,” said Stephen G. Oswald, chairman, president, and CEO. “Fourth quarter revenue grew significantly, up 15% year-over-year to $164 million; gross margins posted an impressive improvement to 19.9%, and the backlog rose to $864 million, which is a new all-time record, and up over $125 million from the end of 2017.”