LOS ANGELES – Ducommun’s Electronic Systems unit reported second quarter net revenues ended July 2 of $72.7 million, down 26.4% year-over-year.

The segment experienced a $17.1 million decrease in industrial revenues mainly due to the divestiture of its Pittsburgh operations in January and the closure of its Houston operation in December. Military and space revenue decreased $15 million because of the divestiture of the Miltec operation in March and program cancellations and budget changes in the prior year. This was partially offset by a $6.1 million increase in commercial aerospace revenue as a result of added content with existing customers.

Electronic Systems adjusted EBITDA was $10.5 million for the second quarter, or 14.4% of revenue, compared to $12.1 million, or 12.2% of revenue, for the comparable quarter in the prior year.

Operating income for the segment was $6.8 million, or 9.3% of revenue, compared to $7.7 million, or 7.8% of revenue, for the second quarter of 2015.

Ducommun’s total net revenues for the second quarter were $133.4 million, down 23.7% year-over-year. Net income was $3.9 million, up 116.7% compared to the second quarter of 2015. Operating income was $7.3 million, or 5.4% of revenue, compared to $10.8 million, or 6.2% of revenue, in the comparable period last year.

“We are pleased to report that Ducommun continued to show improved financial performance as a result of the many strategic initiatives undertaken this past year to reduce costs and streamline operations. At the same time, we have sharpened our focus on the key markets we serve and invested in attractive, long-term growth opportunities,” said Anthony J. Reardon, chairman, president and CEO. “Revenue for the quarter was roughly flat sequentially, net of our Miltec and Pittsburgh divestitures, and we posted strong margins as well as solid bottom line results. Although our backlog and sales were slightly impacted by temporary program delays, we expect our improved performance to continue in the second half of 2016.”

The company’s backlog as of July 2 was $537 million, which decreased $26 million sequentially.

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