Ducommun to Record Third Quarter 2015 Charges
23 October 2015 - 7:15AM
Business Wire
Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”)
today announced that it 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). Additional information can be found at
www.ducommun.com.
Statements contained in this press release regarding other than
recitation of historical facts are forward-looking statements.
These statements are identified by words such as “may,” “will,” “
begin,” “ look forward,” “expect,” “believe,” “intend,”
“anticipate,” “should,” “potential,” “estimate,” “continue,”
“momentum” and other words referring to events to occur in the
future. These statements reflect the Company’s current view of
future events and are based on its assessment of, and are subject
to, a variety of risks and uncertainties beyond its control,
including, but not limited to, the state of the world financial,
credit, commodities and stock markets, and uncertainties regarding
the Company, its businesses and the industries in which it
operates, which are described in the Company’s filings with the
Securities and Exchange Commission. The Company is under no
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result
of new information, future events or otherwise.
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Ducommun IncorporatedJoseph P. BellinoVice President and Chief
Financial Officer310-513-7211orChris WittyInvestor
Relations646-438-9385cwitty@darrowir.com
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