LOS ANGELES Ducommun
Inc.s first-quarter results fell below Wall Street
expectations despite a 55.1-percent rise in earnings, sending
its stock price plummeting this week.
The Los Angeles-based aerospace
and defense contractors net income totaled $3.7 million
(35 cents per diluted share) for the three months ended March
31, up from $2.4 million (23 cents per share) in the same
year-ago period, despite sales that fell 4.6 percent to $175.9
million from $184.3 million.
The latest figures, released May
6, generally fell below analysts expectations of an
average of $185.73 million in sales and earnings of 41 cents
per share, according to Yahoo Finance.
Ducommuns common stock on
May 7 lost about 27 percent of its previous days value,
ending the day at $19.47 per share, the days largest
decline reported by the New York Stock Exchange. The value
continued to decline May 8, shedding another 7.5 percent to
finish at 18.01 per share.
Meanwhile, sequestration has
hampered Ducommuns ability to predict future defense
business. While Ducommuns defense backlog is higher now
than it was at this time last year, its visibility is "hindered
by the lack of clarity in terms of federal budget," chairman,
president and chief executive officer Anthony J. Reardon said
during an earnings call.
The commercial aerospace
industry provides "growth opportunities" and Ducommun is seeing
"active bidding" by Chicago-based Boeing Co. and Toulouse,
France-based Airbus SAS on the type of products it supplies, he
First-quarter operating income
for the companys Ducommun AeroStructures segment, which
includes its titanium fabrication operations, was flat at $6.6
million on a 2.2-percent decline in revenue to $72.7 million.
The company attributed that slump to a drop in sales of
military and commercial helicopter components, partially offset
by higher sales of commercial aircraft products.
Ducommuns backlog at the
end of the first quarter was $638 million, down from $656
million at the end of 2012. Ducommun AeroStructures
backlog declined during the same period to $300 million from
$320 million, of which $191.6 million was in commercial
aerospace and the remainder in military and space.