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About Ducommun Labarge Technologies, Inc.

Too common? Not at all. Ducommun designs and makes aerostructures and electromechanical components for commercial and military aircraft, as well as for missile and space programs. Structural Systems engineers and manufactures structures and assemblies, such as aircraft wing spoilers and large fuselage skins, rotor blades on rotary-wing aircraft and components. Electronic Systems makes electromechanical components, such as switch assemblies, actuators, keyboard panels, and avionics racks. Products for military and space applications account for about 45% of its sales each year.

Operations

Ducommun operates through two primary business segments: Electronic Systems and Structural Systems, which both equally share the company's total revenue.

Structural Systems' (SS) production techniques include stretch-forming (the creation of large structural shapes from aluminium sheet metal extrusions) and hot-forming (metal working at high temperature) and computer-controlled machining. The segment also provides chemical milling (the removal of material to reduce weight) services. Besides making electronic, electromechanical, and interconnect systems and components, Electronic Systems (ES) offers services that include design, integration, and testing for advanced weapons and missile defense systems.

Geographic Reach

The company has about 30 facilities in located in Arizona, Arkansas, California (headquarters), Kansas, Missouri, New York, Oklahoma, and Wisconsin. Ducommun also operates plants in Mexico and Thailand.

Sales and Marketing

Ducommun serves the aerospace (generates about 50% of total revenue), defense (around 45%), industrial (over 5%), and medical industries. Boeing accounted for around 20% of 2019 revenues; Spirit, more than 10%.

Financial Performance

Ducommun had fluctuating revenues in the last five years, rising and falling year after year. Overall, the company's revenues grew by 8% between 2015 and 2019. Ducommun's profits have also vastly improved over the years from its loss in 2015.

Ducommun's revenue rose 15% to $721.1 million in 2019 compared to $629.3 million in 2018. The year-over-year increase was due to $46.2 million higher revenues in its military and space end-use markets and $45 million higher revenues in its commercial aerospace end-use markets due to additional content and higher build rates on large aircraft platforms.

Net income was $32.5 million in 2019 from $9 million in 2018. The increase in net income was due to an increase of $29.6 million in gross profit that was due to higher revenues and improved operating performance and lower restructuring charges of $14.8 million. The increases were partially offset by higher selling, general, and administrative expenses of $12 million, higher interest expense of $5.3 million, and income tax expense of $4.1 million.

Cash at the end of 2019 was $29.3 million higher at $39.6 million. Operating activities generated $51 million, and financing activities contributed another $73.2 million from revolving credit borrowings. Investing activities used $94.9 million, mainly for the acquisition of Nobles Worldwide and purchases of property and equipment.

Strategy

Ducommun grows through its acquisitions. The company has supplemented its organic growth by identifying, acquiring, and integrating acquisition opportunities that result in broader, more sophisticated product and service offerings while diversifying and expanding its customer base and markets.

In late 2019, Ducommun acquired Nobles Parent Inc., a privately-held global leader in the design and manufacturing of high performance ammunition handling systems for a wide range of military platforms including fixed-wing aircraft, rotary-wing aircraft, ground vehicles, and shipboard systems for $77 million. The acquisition of Nobles advances its strategy to diversify and offer more customized, value-driven engineered products with aftermarket opportunities and is included in its Structural Systems segment.

Mergers and Acquisitions

In late 2019, Ducommun acquired Nobles Worldwide, Inc. (Nobles), based in Wisconsin, for a purchase price of $77 million. Nobles Worldwide is the global leader in the design and manufacture of high performance ammunition handling systems for military aircraft, helicopters, ground vehicles and shipboard systems. The acquisition expands Ducommun's current footprint into another segment of the defense market, ammunition delivery and handling systems.

Company Background

Considered the oldest company in California with a founding date of 1849, Ducommun is dedicated to new technologies for the aerospace industry. It was the first to make all-composite rotor blades for Sikorsky S-61 helicopters; traditional blades were made of a mixture of metal and composite materials.

Ducommun Labarge Technologies, Inc.

23301 Wilmington Ave
Carson, CA 90745-6209
Phone: 1 (310) 513-7200

Firm Stats

Employer Type: Privately Owned
Corporate Commodity Manager: Ross Bilodeau
Sec: Amy M Paul
Training Manager: Pauline Potratz
Employees (This Location): 180
Employees (All Locations): 255

Major Office Locations

Carson, CA