May 4, 2009 / 6:59 PM / 10 years ago

UPDATE 2-Ducommun Q1 profit beats Street view

* Q1 EPS $0.54 vs est EPS $0.40

* Revenue up 13 pct

* Shares rise 18 pct

(Recasts; adds conference call details, analyst comment, updates share movement)

By Biswarup Gooptu

BANGALORE, May 4 (Reuters) - Aircraft parts maker Ducommun Inc (DCO.N) posted quarterly profit well above Wall Street estimates, helped by higher revenue from both its segments, sending its shares up 18 percent.

Quarterly revenue rose 13 percent to $111.4 percent. Military revenue made up 61 percent of the total, while commercial revenue accounted for 39 percent.

Jesup and Lamont analyst Alex Hamilton said with Ducommun’s military business growing at a steady rate, its dependence on commercial projects, such as the Boeing (BA.N) 787 Dreamliner, would lessen. The company supplies mechanical enclosures and wire harnesses for the aircraft.

“The bulk of their business is in military... So, they’re not tied in to the Boeing 787 mess,” said Hamilton, who has a “hold” rating on the stock.

Boeing, already two years behind schedule to get its 787 Dreamliner into the air, is yet to state when the first test flight will take place.

BB&T Capital Markets analyst Michael Lewis said Ducommun’s Blackhawk and Chinook programs should continue to be revenue generators for the company.

“Blackhawk did benefit from higher build rates from its prime contractor, and that did ripple down through the operations for Ducommun,” he said.


The company posted first-quarter net income of $2.6 million, or 25 cents a share, compared with $5.3 million, or 49 cents a share, a year ago.

The latest quarter included a charge of 27 cents a share for an inventory reserve related to the Eclipse Aviation Chapter 7 bankruptcy filing in March.

Ducommun does not have any further exposure to Eclipse, a company executive said on a conference call with analysts. The company makes the fuselage and cockpit skin panels for the Eclipse 500 aircraft.

According to Reuters Estimates, Ducommun earned 54 cents a share, excluding items, above market expectations of 40 cents a share.

Revenue in the aerostructures segment grew 14 percent to $72.8 million, while technologies revenue rose 11 percent to $38.6 million, according to a regulatory filing.

Shares of the Carson, California-based company rose to a high of $21.42 before paring some gains to trade up 8 percent at $19.60 Monday afternoon on the New York Stock Exchange. (Reporting by Biswarup Gooptu in Bangalore; Editing by Anne Pallivathuckal)

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