SANTA ANA, CA – Ducommun reported fourth quarter Electronic Systems net revenue of $99.1 million, up 2.9% year-over-year.

The year-over-year increase was primarily due to $17.6 million higher revenue within the company’s military and space end-use markets, partially offset by $10.1 million lower revenue within the industrial end-use markets and $4.7 million lower revenue within the commercial aerospace end-use markets.

The Electronic Systems segment posted operating income for the fourth quarter of $11.5 million, or 11.6% of revenue, compared to $9.9 million, or 10.2% of revenue, for the comparable quarter in 2019. The year-over-year increase was due to favorable manufacturing volume and favorable product mix, partially offset by higher compensation and benefit costs.

Ducommun reported total fourth quarter net revenue of $157.8 million, down 15.6% year-over-year.

Net income was $9.7 million, an increase of 9% compared to the fourth quarter of 2019. Operating income was $11.6 million, or 7.3% of revenue, compared to $15.2 million, or 8.1% of revenue, in the comparable period of the prior year. Adjusted EBITDA was $22.8 million, or 14.4% of revenue, compared to $25.2 million, or 13.5% of revenue, for the comparable period in 2019.

“I am proud of the Ducommun team continuing to move forward in the fourth quarter and delivering excellent results,” said Stephen G. Oswald, chairman, president and CEO. “The numbers show the strength of our product lines, diversity of our customer base and performance position us well for the future. Our military and space revenue rose more than 25% in both the fourth quarter and the year as a whole, resulting in total 2020 revenue of almost $425 million, a new record for the company. At the same time, ongoing cost-saving projects and our Lean operations initiatives, along with an improved product mix, drove fourth quarter gross margins up 60 basis points year-over-year to 22.1%, and earnings of $0.80 per diluted share. The positive results during the pandemic are a clear signal that Ducommun's value offering to the marketplace and operational performance will deliver for our shareholders in the future.

“With a defense backlog at all-time highs and some forecasted stability in our commercial business, we are optimistic about the quarters to come. Given improving fundamentals in aircraft production and pent-up demand for air travel post-pandemic, the company is in great shape to weather the remaining headwinds and drive higher growth in the second half of 2021, with the 2022 outlook being even better. I want to thank our employees for their dedication to our success, Ducommun's investors for their support, and our customers for their loyalty throughout 2020.”

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