Astronics Corporation posts second quarter US$6.7 million net income, down 52%

Astronics Corporation has reported financial results for the second quarter ended June 29, 2019. Consolidated sales were down 9.4%, or US$19.5 million, including sales of the semiconductor business which was divested in the first quarter of 2019. Excluding the divestiture, adjusted consolidated sales were up 5.4%, or US$9.7 million, demonstrating growth in both the Aerospace and Test Systems segments.

Consolidated operating income decreased to US$10.6 million, or 5.6% of sales, compared with US$20.1 million, or 9.6% of sales in the prior-year period. The decline was primarily due to the divestiture of the semiconductor business. Adjusted consolidated income from operations excluding the operations of the divested semiconductor test business was US$8.5 million, or 4.6% of adjusted consolidated sales, compared with US$9.9 million, or 5.6% of adjusted consolidated sales, in the prior-year period. Net income was US$6.7 million compared with US$14.0 million in the prior year.

Impacts to operating income and margin included US$2.2 million in severance charges associated with restructuring initiatives, tariff expenses of US$2.3 million and operating losses of US$7.7 million related to the challenged Aerospace businesses. The US$7.7 million operating loss included a charge for inventory reserves of US$1.6 million. Operating losses related to challenged Aerospace businesses were US$8.1 million in the second quarter of 2018 and $10.7 million in the trailing first quarter of 2019.

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