LMI Aerospace, Inc. (LMIA), a provider of engineering services and structural components to the aerospace and defense industries, announced record second quarter financial results this afternoon. Revenues were $64.9 million, an increase of 91% compared to $33.9 million in Q2 2007. Net income rose 72% to $5.0 million, or 45 cents per share, from $2.9 million, or 26 cents per share, for the same period last year. Analysts surveyed expected the company to earn 39 cents per share on $61.2 million in revenues.
LMI Aerospace’s business is comprised of two segments. Revenues in the Aerostructures segment were a record $41.6 million. Sales in the Engineering Services segment were $24.0 million, representing the contribution of D3 Technologies, which was acquired on July 31, 2007. “Demand from the major customers in our Aerostructures segment increased steadily as we progressed through the second quarter,” said Ronald S. Saks, President and Chief Executive Officer of LMI Aerospace, Inc. “Our Engineering Services segment also continued to add employees and handle record demand from its key customers in an exemplary fashion. The Engineering Services group has enhanced the product and service offerings of our Aerostructures group and helped us manage large projects on newly developed aircraft. We are pleased that the integration of D3 into LMI has progressed so well.”
Backlog of orders as of June 30, 2008 was $163 million compared to $141 million on June 30, 2007. The company raised its full-year revenue guidance to $249 – $265 million from a prior range of $241 – $259 million. Current analysts’ consensus is $251.6 million.
“As we look at the second half of 2008 and beyond, the anticipated growth in revenues is expected to result in increased production rates and market-share gains in the military segment, higher tooling revenue from new projects on the Gulfstream G650, the Boeing 747-8 and other new programs; customer offload programs on the Boeing 747-8; and the start of production of the Boeing 767 wing modification kit and winglet assemblies,” Saks said. “These programs are expected to add to revenue in 2009 as well. LMI continues to build a responsive project management organization in both segments in order to provide unique services to our customers. As we continue along the path to producing design build products, we are aggressively pursuing acquisitions and studying greenfield investments in composites and high-speed machining in order to provide the products our customers require.”
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