Ducommun Inc. reported a 31 percent decline in first quarter net income, due to expenses related to its acquisition of electronics maker LaBarge Inc. and lower sales.
After the markets closed Monday, the Carson aerospace components maker reported net income of $2.9 million (27 cents per share), compared with $4.2 million (40 cents) a year earlier. Sales fell 4.5 percent to $99.6 million.
Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 41 cents on revenue of $99.7 million.
The company said that results were adversely affected by expenses related to its merger agreement with St. Louis, Mo.-based LaBarge announced last month. Ducommun expects the $305 million acquisition to nearly double its revenue and bring access to new customers and markets. The company blamed the sales decrease on lower revenue from its engineering services unit, and a delay in release of orders for certain military aircraft programs.
“While we also experienced some delays on the F-15 and F-18, we see these as being made up in future quarters, and we began shipping again for both the Carson and Chinook helicopters,” said Chief Executive Anthony J. Reardon in a statement. “We are close to finalizing a contract for follow-on C-17 orders, which should lead to more predictable revenue on this platform for the remainder of the year and into 2012.”
Shares on Tuesday closed down $2.05 cents, or 9 percent, to $20.18 on the New York Stock Exchange.
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