Sales for the third quarter of 2009 increased 9% to
The increase in sales for the third quarter of 2009 from the same period
last year was due to the
Gross profit, as a percentage of sales, was 20.5% in the third quarter of 2009, compared to 20.6% in the third quarter of 2008.
Selling, general and administration (SG&A) expenses increased to
Net income for the third quarter of 2009 decreased 1% from the third quarter of 2008 due to higher interest expense on higher debt levels and a higher effective tax rate in the third quarter of 2009. The Company’s effective tax rate for the third quarter of 2009 was 33.0%, compared to 30.3% in the third quarter of 2008.
Sales for the first nine months of 2009 increased 8% to
The increase in sales for the first nine months of 2009 from the same
period last year was due to the
Gross profit, as a percentage of sales, was 18.3% in the first nine
months of 2009, compared to 21.0% in the first nine months of 2008.
Gross profit in the first nine months of 2009 was negatively impacted by
a previously reported inventory valuation adjustment of
SG&A expenses increased to
Net income for the first nine months of 2009 decreased 23% from the first nine months of 2008 primarily due to the reasons stated above and higher interest expense on higher debt levels, partially offset by the benefit of a lower effective tax rate in the first nine months of 2009. The Company’s effective tax rate for the first nine months of 2009 was 33.0%, compared to 34.6% in the first nine months of 2008. The Company’s effective tax rate in 2009 included the benefit of research and development credits which were not available to the same extent in the first nine months of 2008. The Company expects its full year effective tax rate for 2009 to be approximately 30% to 32%.
Mr. Berenato continued, “Despite a difficult commercial aerospace
market, tight control of operating expenses allowed us to maintain our
profit margins in the quarter. As a result, we were able to continue to
make substantial investments in new programs without sacrificing current
profitability. These new programs offer
Founded in 1849,
A teleconference with
This call is being webcast by
The statements made in this press release include forward-looking
statements that involve risks and uncertainties. The Company's future
financial results could differ materially from those anticipated due to
the Company's dependence on conditions in the airline industry, the
level of new commercial aircraft orders, production rates for
DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||||||||||||
COMPARATIVE DATA | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
Oct. 3, | Sept. 27, | Oct. 3, | Sept. 27, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||
Sales and Service Revenues | ||||||||||||||||||
Product sales | $ | 95,227 | $ | 86,299 | $ | 277,993 | $ | 259,200 | ||||||||||
Service revenues | 14,676 | 14,557 | 47,090 | 43,179 | ||||||||||||||
Total | 109,903 | 100,856 | 325,083 | 302,379 | ||||||||||||||
Operating Costs and Expenses: | ||||||||||||||||||
Cost of product sales | 76,015 | 68,462 | 228,217 | 204,435 | ||||||||||||||
Cost of service revenues | 11,350 | 11,571 | 37,294 | 34,537 | ||||||||||||||
Selling, general and administrative expenses | 12,647 | 11,484 | 37,591 | 35,942 | ||||||||||||||
Total | 100,012 | 91,517 | 303,102 | 274,914 | ||||||||||||||
Operating Income | 9,891 | 9,339 | 21,981 | 27,465 | ||||||||||||||
Interest Expense, Net | (652 | ) | (355 | ) | (2,005 | ) | (948 | ) | ||||||||||
Income Before Taxes | 9,239 | 8,984 | 19,976 | 26,517 | ||||||||||||||
Income Tax Expense | (3,049 | ) | (2,720 | ) | (6,592 | ) | (9,170 | ) | ||||||||||
Net Income | $ | 6,190 | $ | 6,264 | $ | 13,384 | $ | 17,347 | ||||||||||
Earnings Per Share: | ||||||||||||||||||
Basic earnings per share | $ | 0.59 | $ | 0.59 | $ | 1.28 | $ | 1.64 | ||||||||||
Diluted earnings per share | $ | 0.59 | $ | 0.59 | $ | 1.27 | $ | 1.63 | ||||||||||
Weighted Average Number of Common Shares Outstanding: |
||||||||||||||||||
Basic | 10,449 | 10,578 | 10,465 | 10,567 | ||||||||||||||
Diluted | 10,491 | 10,693 | 10,502 | 10,671 | ||||||||||||||
DUCOMMUN INCORPORATED AND SUBSIDIARIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands, except per share amounts) | ||||||||||
October 3, | December 31, | |||||||||
2009 | 2008 | |||||||||
Assets | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | $ | 823 | $ | 3,508 | ||||||
Accounts receivable, less allowance for doubtful accounts | 60,249 | 50,090 | ||||||||
Unbilled receivables | 4,250 | 7,074 | ||||||||
Inventories | 89,966 | 83,157 | ||||||||
Deferred income taxes | 9,381 | 9,172 | ||||||||
Other current assets | 6,083 | 6,172 | ||||||||
Total Current Assets | 170,752 | 159,173 | ||||||||
Property and Equipment, Net | 61,273 | 61,954 | ||||||||
Goodwill, Net | 113,378 | 114,002 | ||||||||
Other Assets | 29,423 | 31,057 | ||||||||
$ | 374,826 | $ | 366,186 | |||||||
Liabilities and Shareholders' Equity | ||||||||||
Current Liabilities: | ||||||||||
Current portion of long-term debt | $ | 4,972 | $ | 2,420 | ||||||
Accounts payable | 32,116 | 35,358 | ||||||||
Accrued liabilities | 34,279 | 51,723 | ||||||||
Total Current Liabilities | 71,367 | 89,501 | ||||||||
Long-Term Debt, Less Current Portion | 42,400 | 28,299 | ||||||||
Deferred Income Taxes | 11,014 | 9,902 | ||||||||
Other Long-Term Liabilities | 13,587 | 14,038 | ||||||||
Total Liabilities | 138,368 | 141,740 | ||||||||
Commitments and Contingencies | ||||||||||
Shareholders' Equity: | ||||||||||
Common stock | 106 | 106 | ||||||||
Treasury stock | (1,924 | ) | (986 | ) | ||||||
Additional paid-in capital | 57,705 | 56,040 | ||||||||
Retained earnings | 184,744 | 173,718 | ||||||||
Accumulated other comprehensive loss | (4,173 | ) | (4,432 | ) | ||||||
Total Shareholders' Equity | 236,458 | 224,446 | ||||||||
$ | 374,826 | $ | 366,186 |
Source:
Ducommun Incorporated
Joseph P. Bellino
Vice President and
Chief Financial Officer
310-513-7211