November 5, 2014
Astronics Corporation sales double to record US$179.4m
Astronics Corporation reported that consolidated sales for the third quarter of 2014 increased 100.1% to US$179.4m compared with US$89.7m for the same period last year. Aerospace segment sales increased US$34.7m to US$122.2m and Test Systems segment sales increased US$55.1m to US$57.2m. The 2014 third quarter included US$74.1m in sales for two businesses acquired after September 28th, 2013. Organic sales increased US$15.6m, or 17.4%. Consolidated gross margin was 28.6% in the third quarter of 2014 compared with 26.5% in the third quarter of 2013. Margin leverage achieved from increased organic sales volume was somewhat offset by approximately $1.3 million in costs related to the fair value step-up of inventory from acquired businesses, US$2.4m in increased warranty expense and higher engineering and development (“E&D”) costs. E&D costs were US$19.1m in the third quarter of 2014, which included US$5.1m for businesses acquired after the third quarter of 2013. E&D costs in last year’s third quarter were US$12.4m. There were also US$1.7m in charges for work force reductions associated with the realignment of the Test Systems segment.