Ducommun Inc. on Monday reported a quarterly loss in part due to an $8 million goodwill impairment charge. Though revenues beat Wall Street estimates, the defense contractor's shares dropped 14 percent on its worse-than-expected earnings.
The Los Angeles maker of parts for commercial and military aircraft reported a net loss of $4.2 million (40 cents a share), compared with net income of $5.4 million (51 cents) a year ago. Revenue rose more than 8 percent to $101 million, boosted by sales at its AeroStructures and Technologies businesses.
Results were affected by the non-cash goodwill impairment charge that worked out to 76 cents a share. In addition, sales were hurt by a strike at one of its customers, Boeing Co.
Excluding one-time items, earnings were 36 cents per share. Analysts surveyed by Reuters Estimates on average had expected adjusted earnings of 44 cents on revenue of $95 million.
Full-year net income was $13.1 million ($1.23), compared with net income of $19.6 million ($1.88) in 2007. Sales rose 10 percent to nearly $404 million.
"2008 was the most profitable year in the 159 year history of Ducommun, not considering the non-cash goodwill impairment charge," Chief Executive Joseph C. Berenato said in a statement." The goodwill impairment charge was a disappointment, but was primarily a result of our depressed stock price" (at the end of the year).
In a separate announcement, Ducommun said its AeroStructures subsidiary was awarded a design and build contract for the ailerons and spoilers on Embraer's new Legacy 450 and 500 series of light mid-size business jets. The contract is valued at more than $50 million.
Ducommun shares were down $2.23, or 14 percent, to $13.63 in morning trading on the New York Stock Exchange.
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