LOS ANGELES – Ducommun today reported first-quarter revenue in its EMS segment rose 2.9% year-over-year to $100.9 million.

The Ducommun LaBarge Technologies division showed a 67% increase in commercial aerospace electronics revenue and a 7.8% increase in non-A&D revenue, partially offset by a 10% decrease in military and space revenue. The segment's operating income was $6.3 million, down from $7 million in 2014. EBITDA was $10.6 million, compared to $12.1 million in the comparable quarter of the prior year.

For the period ended Apr. 4, the company's overall revenue was $172.9 million, down 3.8% year-over-year. The revenue decrease reflects 22.4% lower revenue in the firm’s military and space markets, partially offset by 19.7% higher revenue in commercial aerospace and 7.8% higher revenue in the non-aerospace and defense (non-A&D).

The company reported a net loss for the quarter of $2 million, compared to net income of $5.2 million in the same period of 2014, primarily due to an unfavorable product mix, lower revenues, loss of efficiencies resulting from lower manufacturing volume, higher accrued compensation and benefit costs, and higher professional service fees, partially offset by lower income tax expense and lower interest expense, the firm says.

Operating income was $3.6 million, or 2.1% of revenue, compared to $14.8 million, or 8.2% of revenue, in the comparable period last year.  EBITDA was $10.5 million, or 6.1% of revenue, compared to $22.3 million, or 12.4% of revenue, for the same quarter of 2014.

During the first quarter, Ducommun generated $3.5 million in cash from operations, compared to cash used in operations of $9.8 million during the first quarter of 2014.

The firm’s backlog as of Apr. 4 was approximately $538 million.

“We are very disappointed in our 2015 first quarter financial and operational performance and are taking swift action to resolve or mitigate the factors that impeded our execution during the quarter,” said Anthony J. Reardon, chairman and CEO. “The lost revenue from the decline in our military and space business, particularly in our AeroStructures operating segment, caused us to incur higher relative indirect costs at a faster rate than we were able to offset with our cost-reduction initiatives. We are experiencing solid large airframe commercial aerospace demand, up 11% year-over-year. In addition, our industrial sector revenue rose year-over-year, benefiting from ongoing business development efforts.”

The DAS segment reported net revenue for the first quarter of $72.1 million, down 11.8% year-over-year. The lower net revenue was primarily due to a 43% decrease in military and space revenue, partially offset by a 10.8% increase in commercial aerospace revenue.

DAS segment operating income was $2.1 million, or 3% of revenue, compared to operating income of $11.1 million, or 13.6% of revenue, for the first quarter of 2014. EBITDA was $4.7 million, or 6.5% of revenue, compared to $13.5 million, or 16.5% of revenue, for the comparable quarter in the prior year.

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