Ducommun to Record Third Quarter 2015 Charges


Reading time ( words)

Ducommun Inc. expects to recognize $22.7 million in one-time pretax charges during the third quarter of 2015, comprising the following: a $10.0 million charge for a regional jet program in the Ducommun AeroStructures segment, reflecting estimated cost overruns for the remaining contractual period; a previously disclosed $11.9 million loss on extinguishment of debt related to refinancing the company’s debt; and $0.8 million of restructuring charges, reflecting costs associated with organizational realignments and the closure of two facilities.

Total after-tax charges are expected to be $14.3 million, or approximately $1.28 per diluted share. The company expects to realize annualized savings of approximately $15.0 million on the refinancing of the Company’s debt and approximately $2.0 million to $3.0 million by the facility closures.

With regard to the charge on the regional jet program, Anthony J. Reardon, the company's chairman and chief executive officer, stated, “This action reflects the remainder of the contract, through 2016, as we have not reached agreement on sufficient price adjustments with the customer. We have been unable to reduce costs sufficiently to meet our targets and, therefore, the program remains unprofitable.

“We are streamlining our operations and consolidating certain facilities and functions to reduce costs and enhance margins, resulting in the associated restructuring charge. We continue to strategically review our overall footprint – as well as our product portfolio – and are taking additional actions to operate more efficiently and ensure long-term growth and sustainable margins.”

About Ducommun Incorporated

Founded in 1849, Ducommun Incorporated provides engineering and manufacturing services to the aerospace, defense, and other industries through a wide spectrum of electronic and structural applications. The Company is an established supplier of critical components and assemblies for commercial aircraft and military and space vehicles as well as for the energy market, medical field, and industrial automation. It operates through two primary business units – Ducommun AeroStructures (DAS) and Ducommun LaBarge Technologies (DLT).

Share

Print


Suggested Items

KYZEN’s Popular Cleaning Series Continues

11/25/2020 | I-Connect007 Editorial Team
Wondering what to look for in a PCB cleaning agent? In just 10 minutes, you will learn from Jack Reinke what impacts your waste stream as part of the latest installment of KYZEN’s Tech2Tech series. This special webinar is held live at two times: 7:18 a.m. and 5:33 p.m. PST December 3, 2020.

IPC Standards Development: Business Challenges and an Inside View

10/28/2020 | Graham Naisbitt, Gen3 Systems
With increasing frequency, standardising the standards, such as ISO 9201, imposes certain rules that must be met to ensure “fair play” amongst the supply chain. There will be those familiar with hearing about “false positives/negatives” and “never trust the salesman,” so mitigating these is no easy task. However, there is the chance for each 5-30 Task Group to review industry requirements and set out the work program for the ensuing period. With that in mind, much of what follows is based on comments we learn about from our industry around the world, many of whom are not yet IPC members. Yes, this is a membership recruitment drive, unashamedly, as well as a search for volunteers willing to help create the standards of tomorrow.

Real Time with… SMTAI 2020: Women’s Leadership Program Cruises Through Important Topics

10/09/2020 | Michelle Te, I-Connect007
The virtual environment didn’t stop a large gathering of women (and men) from learning, sharing, and enjoying the Women’s Leadership Program during SMTAI 2020. Michelle Te shares her experience.



Copyright © 2020 I-Connect007. All rights reserved.