Free 7-day Trial
All Articles and Columns »

LMI Aerospace Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
insider

10qk

18 followers
LMI Aerospace Inc. (LMIA) filed Quarterly Report for the period ended 2010-09-30.

Lmi Aerospace Inc. has a market cap of $192.06 million; its shares were traded at around $16.3 with a P/E ratio of 14.3 and P/S ratio of 0.8. Lmi Aerospace Inc. had an annual average earning growth of 37.1% over the past 5 years.LMIA is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of LMIA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of LMIA.


Highlight of Business Operations:

Net sales of products used in large commercial aircraft were $12.5 million for the third quarter of 2010 compared to $18.6 million for the third quarter of 2009, a decrease of $6.1 million, or 32.8%. This decrease primarily resulted from a $4.6 million decline in net sales of aftermarket wing modification products to $2.3 million for the third quarter of 2010 from $6.9 million for the third quarter of 2009. Net sales for the 737 aircraft were $5.7 million in the third quarter of 2010, down from $6.2 million in the third quarter of 2009, due to delivery in 2009 of $0.3 million of 737 Classic winglets that concluded that contract, and inventory management policies at our customers. Net sales for the 747 aircraft declined to $2.2 million in the third quarter of 2010 from $3.6 million in the third quarter of 2009. This decline is attributable to the absence of a portion of a floor beam kitting program for the 747 and lower demand for product as the new 747-8 platform starts up at Boeing. The 777 generated net sales in the third quarter of 2010 of $1.3 million, up from $1.2 million in the third quarter of 2009. The 787 generated $0.4 million in the third quarter of 2010, up from less than $0.1 million in the third quarter of 2009, as production needs began to drive demand as the aircraft moves toward first delivery and planned production rate increases.

Military products generated $9.5 million of net sales in both the third quarter of 2010 and 2009. Reductions in demand for Apache Helicopter product resulted in a decline in net sales to $0.3 million for the third quarter of 2010 from $0.6 million in the third quarter of 2009. Offsetting this decline was growth on the Blackhawk programs with net sales of $8.1 million in third quarter of 2010 compared to $7.8 million in the third quarter of 2009.

Other products generated $2.5 million in net sales in the third quarter of 2010 compared to $1.2 million in the third quarter of 2009, an increase of $1.3 million, or 108.3%. This increase was partially a result of an increase of $0.6 million in technology product sales to $0.9 million in the third quarter of 2010 from $0.3 million in the third quarter of 2009 and an increase of $0.9 million in sales at Intec to $1.6 million in the third quarter of 2010 from $0.7 million in third quarter 2009.

Net sales for services supporting corporate and regional aircraft were $4.9 million in the third quarter of 2010 compared to $4.5 million for the third quarter of 2009, an increase of $0.4 million, or 8.9%. Net sales for the Mitsubishi Regional Jet were $2.5 million in the third quarter of 2010, up from $1.2 million in the third quarter of 2009. Additionally, work began during 2010 on the Lear-85 platform, which generated $1.0 million in the third quarter of 2010. These increases were partially offset by lower net sales on the G650 project which generated $2.5 million in the third quarter of 2009 compared to $0.8 million in the third quarter of 2010, as engineering efforts have been substantially completed.

Net sales for services for large commercial aircraft were approximately $8.8 million in the third quarter of 2010, up $0.9 million, or 11.4%, from $7.9 million in the third quarter of 2009. This increase is due to work begun in 2010 on the Airbus A350 platform which generated $1.0 million in the third quarter of 2010. Net sales for the 787 produced $3.9 million in the third quarter of 2010, up from and $2.6 million in the third quarter of 2009 with the growth coming primarily from engineering efforts for the 787-9 derivative. Additionally, start-up efforts on two additional projects increased revenue in 2010 by $0.7 million. These increases were offset by a $2.3 million decrease in revenues related to the 747-8 platform from $4.7 million in the third quarter of 2009 to $2.4 million in the third quarter of 2010 due to design maturation of the program.

Net sales of services for military programs were $3.8 million in the third quarter of 2010, down $3.6 million, or 48.6%, from $7.4 million in the third quarter of 2009. The decrease in military sales resulted from the completion of requirements on the CH-53, which generated only $0.2 million in the third quarter of 2010, down from $2.4 million in revenues during the third quarter of 2009. Multiple military projects with Lockheed were also winding down, resulting in a $1.8 million decline in revenues to $0.1 million in the third quarter of 2010 from $1.9 million in the third quarter of 2009.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 5.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide