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Commercial aircraft gains boost Ducommun outlook

Keywords: Tags  aerospace, commercial aircraft, Ducommun, Anthony Reardon, Joseph Bellino, quarterly earnings, Frank Haflich

LOS ANGELES — Growing commercial aircraft requirements are boosting the outlook for aerospace supply chain manufacturer Ducommun Inc.

"Ducommun and the entire industry is benefiting from ongoing robust commercial aerospace demand," chairman, president and chief executive officer Anthony J. Reardon said during a quarterly earnings call Aug. 5.

Carson, Calif.-based Ducommun sees "no letup in demand" in commercial aircraft, particularly for Chicago-based Boeing Co.’s 737, 777 aircraft and the 787 Dreamliner, its most popular programs, Reardon said.

Joseph P. Bellino, the company’s chief financial officer, vice president and treasurer, said "we’re now enjoying the higher rates" for the 787 and 777, along with the 737, while programs of European aircraft builder Airbus SAS are bringing "incremental volume."

Ducommun’s commercial aircraft business grew 25 percent from the year-ago period and represented 20 percent of the company’s total revenue, according to Reardon, who is also acting president of the company’s Ducommun AeroStructures segment.

Although Ducommun’s second-quarter corporate net income was relatively flat compared with the same period last year, operating income for Ducommun AeroStructures, which accounts for the parent company’s airframe manufacturing activities, was up 25.5 percent to $9.5 million on sales that gained 9.2 percent to almost $84 million.

The business and regional aircraft markets remain soft, while commercial helicopter shipments have pulled back after hitting a record in 2012, Reardon said.

Ducommun signed an agreement during the quarter with Alenia Aermacchi SpA, a unit of Italy’s Finmeccanica SpA, to produce various fuselage skins for the Airbus A321 aircraft (, May 29). This was Ducommun’s first contract for a single-aisle Airbus aircraft, Reardon said, noting that the company looks to expand sales across Airbus’ A320 family. Ducommum already supplies the Airbus A380 jumbo and A350 twin-aisle programs.

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