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UPDATE 2-LMI Aerospace cuts FY revenue view; shares plunge
August 6, 2010 / 11:45 AM / 7 years ago

UPDATE 2-LMI Aerospace cuts FY revenue view; shares plunge

* Q2 EPS $0.29 vs est $0.30

* Cuts FY rev view to $233 mln-$242 mln

* Q2 aerostructures sales down 5 pct

* Shares plunge about 21 pct

Aug 6 (Reuters) - LMI Aerospace Inc LMIA.O posted a quarterly profit that lagged market expectations, hurt by falling demand from key customer Boeing (BA.N), and cut its 2010 revenue forecast, sending its shares down as much as 21 percent.

LMI said lower expectations for sales to military helicopter makers and delays in certain military projects would hurt 2010 sales at its key aerostructures segment.

The aerostructures segment, which contributed 68 percent to LMI’s second-quarter revenue, makes winglets for the Boeing 767 aircraft and parts for other aircraft makers.

LMI cut its full-year sales forecast to between $233 million and $242 million, from $238 million to $250 million.

Analysts expect revenue of $245.6 million, according to Thomson Reuters I/B/E/S. [ID:nWNAB4794]

For the second quarter, net income was $3.3 million, or 29 cents a share, compared with $3.2 million, or 28 cents a share, a year ago.

Revenue fell 11 percent to $55.9 million.

Analysts were looking for a profit of 30 cents on revenue of $60.3 million.

“Aerostructures revenue for the second quarter of 2010 was below expectations, primarily because of lower pulls of military product, delays in new product awards from a military customer, and delays in transfer of work statement from a new customer,” Chief Executive Ronald Saks said.

Aerostructures sales fell 5 percent to $38.2 million, while engineering services sales declined 20 percent to $18 million.

The company said weak demand for Boeing 767 winglets hurt aerostructures sales, while declining demand for services for Boeing commercial aircraft platforms and the Sikorsky CH-53 helicopter dragged down engineering services revenue.

Shares of St Louis-based LMI were down 18 percent at $14.75 in midday trade on Nasdaq. They touched a low of $14.26 earlier in the day. (Reporting by Tenzin Dekeva in Bangalore; Editing by Don Sebastian and Maju Samuel)

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