SANTA ANA, CA – Ducommun’s Electronic Systems segment recorded third quarter net revenue of $85.7 million, up 8.5% year-over-year.

The increase is attributed to $6.7 million higher revenue within the commercial aerospace market and $2 million higher revenue within the company’s military and space markets, partially offset by $2 million lower revenue in the industrial space.

The segment’s operating income was $9.1 million, or 10.6% of revenue, compared to $8.3 million, or 10.5% of revenue, for the comparable quarter in 2017.

Ducommun reported total third quarter revenue up 15.3% to $159.8 million.

The firm experienced $16.3 million higher revenue in the commercial aerospace market and $6.8 million higher revenue in the military and space markets, which was partially offset by $2 million lower revenue in the industrial segment.

For the quarter ended Sept. 29, total net income was $4.2 million, down 10.6% year-over-year. Operating income for the third quarter was $6.8 million, or 4.3% of revenue, compared to $7.3 million, or 5.3% of revenue, in the comparable period last year.

“Ducommun’s third quarter results built on the momentum begun in late 2017, when we started laying the groundwork for higher financial performance based on record backlogs, new program wins, a leaner, more efficient organization, and an effective restructuring strategy,” said Stephen G. Oswald, chairman, president and CEO. “Revenue for the period increased 15.3% over 2017, and margins once again expanded, which is a clear sign of our focus on core technologies and higher operating efficiencies. After booking $3.4 million of restructuring charges this quarter, we remain on track to complete this initiative and, along with ramping volumes across key customer platforms, expect further improved bottom line results in 2019.

“Our commercial aircraft business continues to set sales records, as the company benefits from being a leading provider of value-added structural components and electronic systems for large, narrow-body platforms. At the same time, our defense-related shipments are rising due to strong demand and renewed budget priorities, a trend we see continuing. Also, by taking actions expected to save an estimated $14 million annually through our restructuring measures, we are positioning Ducommun into a much leaner, nimbler competitor in the global aerospace and defense industry.”

During the third quarter, the company generated $7.2 million of cash flow from operations compared to $11.1 million during the third quarter of 2017.

The backlog as of Sept. 29 was $780 million, compared to $726 million as of Dec. 31, 2017, an increase of 7.4%.