Astronics earnings rise on lower costs
Astronics Corp.'s third-quarter profits grew by 5 percent, easily topping analyst forecasts, as the East Aurora aircraft lighting and electronics systems maker was aided by lower costs on test system contracts that are nearing completion.
Astronics' profits rose to $2.5 million, or 23 cents per share, from $2.4 million, or 22 cents per share, a year earlier. Sales rose by 20 percent to $48.6 million from $40.4 million, with all of that increase coming from the $14.1 million in revenues that came with its acquisition of DME Corp. earlier this year. Excluding that acquisition, Astronics' sales from its existing business slid by 15 percent to $34.5 million as its commercial transport and business jet markets weakened.
The earnings were better than the 15 cents per share that analysts had been expecting.
Astronics also booked 43 percent more orders during the third quarter than it did a year ago, with bookings rising to $44 million from $31 million a year earlier.
Astronics also narrowed its revenue forecast for this year, trimming the top end of its prediction by $5 million to $190 million to $195 million.
Although we were encouraged by the improved bookings during the quarter, as we look toward 2010, we currently do not expect any improvement in sales compared with this year and could potentially see a slight decline, said Peter Gundermann, Astronics' president and chief executive officer.
In the third quarter, Astronics' aerospace sales of $39 million were down 4 percent even with the DME acquisition. Without DME, Astronics' aerospace sales were off by 15 percent to $34.5 million.
Astronics' sales to commercial airlines were down by 14 percent as airlines cut spending on projects to install in-seat power systems, as well as in-flight entertainment systems. Military sales grew by 22 percent, partly because of strong sales of power control units for the Tomahawk cruise missile. Business jet sales dropped by 30 percent as the recession took a heavy toll on that market.
DME's test systems business added $9.6 million in sales.
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