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Ducommun Incorporated (DCO-0.84%) has submitted its 10-Q filing for the quarterly period ended September 28, 2024.
The filing details financial performance for the quarter, reporting net revenues of $201.4 million, an increase from $196.3 million in the same period the previous year. The growth was attributed to higher revenues in military and space markets.
Cost of sales for the quarter was $148.7 million, representing 73.8% of net revenues, compared to 77.3% in the same quarter of the previous year. This decrease in cost ratio was due to favorable product mix and higher manufacturing volume.
The company reported a gross profit of $52.7 million for the quarter, compared to $44.6 million in the previous year, with the increase attributed to higher revenues and improved cost management.
Selling, general, and administrative expenses increased to $35.5 million from $32.2 million, primarily due to higher professional services fees and compensation expenses.
Net income for the quarter was $10.1 million, up from $3.2 million in the previous year. The increase was driven by higher gross profit and lower restructuring charges.
Cash provided by operating activities was $15.8 million, while cash used in investing and financing activities was $10.3 million and $11.1 million, respectively.
Ducommun had a backlog of $1,043.9 million as of September 28, 2024, with $690.0 million expected to be delivered over the next 12 months.
The filing also discusses the company's acquisition of BLR Aerospace, L.L.C. and the ongoing restructuring plan aimed at reducing headcount and consolidating facilities.
Ducommun identified a material weakness in its internal controls over financial reporting related to the accuracy of contract terms and gross margin assumptions used to recognize revenue. Remediation steps have been implemented.
The company continues to focus on its aerospace and defense markets, highlighting its dependence on key customers such as Boeing (BA+0.57%), Lockheed Martin (LMT+0.87%), and RTX Corporation (RTX+0.31%).
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ducommun Incorporated quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.