Ducommun CEO: commercial markets look strong
Ducommun Inc. (NYSE:DCO) CEO Joseph Berenato said the commercial markets still look strong as the provider of engineering and manufacturing services for the aerospace and defense industries looks forward. Berenato made the comments during a Monday morning conference call with analysts and investors.
“Build rates remain high and are occasionally growing,” Berenato said. “Our own backlog at the second quarter was $382 million versus $353 million at yearend, so we continue to see our backlog increasing and we expect to see it to continue to gradually increase as we go forward.”
The chief executive said the company is making progress toward its fundamental goals of operational excellence, organizational development and profitable growth. The acquisition environment is starting to improve after a “tough” 18 months, he said.
“After the first half of ’08, we’ve gradually seen better acquisition candidates starting to become available,” Berenato said. “For the first time in 18 months, I think we’re starting to see some things that could be a good fit for us.”
Ducommon’s search for a new chief financial officer is going, the CEO said. The Carson, Calif.-based firm’s previous CFO, Gregory Hann, resigned last November.
“We’ve seen a number of good candidates but we haven’t been ready to close the deal yet. We much prefer to wait to get the right person for us as opposed to trying to do something quickly,” Berenato said. “So, while we want to find our CFO and move forward, we want to make sure it’s a good fit.”
Berenato said Ducommun is also looking to fill other positions.
Before Monday’s opening bell, Ducommun reported a second-quarter profit of $5.8 million, or $0.55 per share, up 26% from $4.6 million, or $0.44 per share, a year earlier. The results topped Wall Street’s expectation of earning $0.51 per share.
Quarterly revenue jumped 13% to $102.9 million, versus $91.1 million a year ago. The results clocked in above Wall Street analysts’ estimate of $100.3 million.
Operating costs and expenses during the quarter rose 12% to $93.3 million from $83.4 million a year ago.
In Monday morning trading, DCO is down 7.09%, or $2.11, to $27.65. For detailed price information and recent news stories about Ducommun, click DCO.
