Ducommun Inc. on Monday said its first quarter net income was cut in half due to a charge related to the bankruptcy of a customer, but the company's results beat analyst expectations.
The Carson maker of aircraft parts reported net income of $2.6 million (25 cents a share), compared with $5.3 million (49 cents) a year ago. Sales rose 13 percent to more than $111 million, helped by the December acquisition of competitor DynaBil Industries Inc. in Coxsackie, N.Y.
The company said results include a charge of 27 cents a share for an inventory reserve related to the Chapter 7 bankruptcy of Eclipse Aviation Corp., an Albuquerque, N.M., maker of "very light" corporate jets. Ducommun makes the fuselage and cockpit skin panels for the Eclipse 500 aircraft, whose future is uncertain.
Analysts surveyed by Reuters Estimates on average were expecting earnings of 40 cents a share before the charge, on revenue of more than $105 million.
"While future build rates of commercial aircraft and the final direction of the U.S. Defense budget remain uncertain, we continue to make Ducommun a stronger and more capable company which is becoming more important to our expanding list of key customers," Chief Executive Joseph C. Berenato said in a statement.
Ducommun makes parts for Boeing's 787 "Dreamliner" airplane and Sikorsky Aircraft Co.'s Black Hawk military helicopters.
Ducommun shares were up $2.12, or 12 percent, to $20.31 in midday trading on the New York Stock Exchange.
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