SANTA ANA, CA – Ducommun reported Electronic Systems segment net revenue for the second quarter was $92 million, up 3% year-over-year, as a result of $7.7 million higher revenue within the military and space end-use markets due to higher build rates on military fixed-wing aircraft platforms, various missile platforms, and other military and space platforms. This was partially offset by $6 million lower revenue within the commercial aerospace end-use markets due to lower build rates on other commercial aerospace platforms.
For the quarter ended June 27, Electronic Systems segment operating income was $10.4 million, or 11.4% of revenue, compared to $9.9 million, or 11.1% of revenue, for the comparable quarter in 2019.
Total net revenue for the second quarter was $147.3 million, down 18.4% year-over-year. Net income was $5.1 million, a decrease of 34.6%. Operating income was $10 million, or 6.8% of revenue, compared to $13.6 million, or 7.5% of revenue, in the second quarter of 2019.
“This past quarter proved to be one of the most challenging in our history, but Ducommun's performance highlights both the strength and diversity of our business, as well as the many measures taken to streamline and optimize our operations since I joined the company in 2017,” said Stephen G. Oswald, chairman, president and CEO. “Due to the ongoing Covid-19 pandemic, commercial aerospace demand was negatively impacted, but our defense-related revenue rose roughly 23% year-over-year, leveraging an array of integral military programs and missile systems. In addition, our military and space backlog increased to over $500 million, bolstering the outlook across this key part of the business.
“At the same time, despite overall lower revenue, gross margins increased year-over-year due to an improved product mix in defense, effective cost controls, value-added pricing and the acquisition of Nobles Worldwide last fall, a key addition to our engineered products portfolio. The team remains focused on rigorous safety protocols, serving our customers, effectively managing working capital, working with the supply base, and reducing costs wherever and whenever possible. We are also confident Ducommun's strong product portfolio, intellectual property, dedicated staff, and efficient operations will provide positive momentum in the second half of the year and position us for a solid rebound in 2021.”
During the second quarter, net cash provided by operations was $8.6 million, down 11.3% year-over-year.