SANTA ANA, CA -- Ducommun reported net revenue at its Electronic Systems segment rose 4.2% year-over-year to $82.4 million on stronger defense and aerospace sales.

Operating income was down 20% to $5.7 million, primarily due to unfavorable product mix, restructuring charges, higher other manufacturing costs, partially offset by favorable manufacturing volume.

The firm reported $5.6 million higher revenue in military and space end-use markets, $900,000 higher revenue in commercial aerospace end-use markets, offset in part by a drop of $2.8 million in revenue for industrial products. Much of the effect was due to accounting changes from adoption of ASC 606.

Overall first quarter revenue was $150.5 million, up 10.4% from a year ago. Operating income was $5.3 million, compared to $4.3 million last year. The 23.6% year-over-year increase was primarily due to higher revenue, partially offset by restructuring charges. Net income was $2.6 million, and adjusted net income was $2.9 million. Adjusted EBITDA was $14.5 million, up from $11.9 million.

“I’m pleased to report that we had another good quarter of progress at Ducommun as we position the company for greater growth and higher margins through the rest of this year,” said Stephen G. Oswald, chairman, president and chief executive, in a statement. “We are seeing meaningful change in many areas of our operations and booked $2.2 million of restructuring charges during the period, primarily impacting our structures operations. Overall, we remain on track to reduce about 17% of our total footprint going forward. We also continued to reduce costs through a leaner organization and are confident of achieving approximately $14 million of annualized savings by the start of 2019."

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