Ducommun’s Quarter Disappoints

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Ducommun Inc reported Monday lower-than-expected second quarterly results, hurt by higher interest expenses and lower sales to its military and commercial aerospace customers.

The Carson Aircraft parts maker reported net income of $4.6 million (44 cents a share), compared with $5.8 million (55 cents) a year ago. Sales rose less than 1 percent to $104 million.

Analysts surveyed by Thomson Reuters on average were expecting earnings of 56 cents a share on revenue of $115 million.

Revenue was hurt by a reduction in the build rate for the Apache helicopter main rotor blade, and commercial sales fell due to general weakness in commercial aircraft markets, the company said.

Ducommun said its interest expense almost doubled to $714,000 on higher debt levels. The company said it is deferring salary increases for management, reducing bonus accruals and cutting jobs.

“Despite a challenging market environment, we are cautiously optimistic that we will see stronger sales in the second half of 2009 than we experienced in the first half of the year,” said Chief Executive Joseph Berenato in a statement.

Ducommun shares were down $2.50, 12 percent, to $15.23 in midday trading on the New York Stock Exchange.

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