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Astronics Earnings Jump 53 Percent

By David Robinson

May 4, 2011
 
Strong demand for its aircraft lighting and electronics products helped Astronics Corp.'s first-quarter profits jump by 53 percent, the East Aurora-based company said today.

The rising demand led to an 18 percent increase in sales, and company executives said they are optimistic that the strength in its aerospace markets will continue throughout the year, prompting them to boost the company's sales forecast for the year by about 3 percent.

"We continue to see solid opportunities in the market, which encourages our optimism for the foreseeable future," said Peter J. Gundermann, Astronics' president and chief executive officer, in a statement.

Astronics' profits jumped to $5.2 million, or 45 cents per share, from $3.4 million, or 31 cents per share, a year ago.

The company's sales rose to $55.1 million from $46.9 million, fueled by a 15 percent increase in revenues from its aircraft lighting and cabin electronics products.

Operating profits at its aerospace business, which accounts for more than 90 percent of Astronics' total revenues, jumped by 38 percent as commercial airlines added in-flight entertainment and in-seat power systems to more planes, while demand grew from the military for aircraft lighting products.

The company's long-struggling test systems business in Florida also showed signs of strengthening, with sales rising by almost a third to $4.9 million. The test systems business also turned a tiny operating profit, and its order bookings improved by more than 60 percent from a year ago.

Astronics' overall order bookings of $54 million were roughly flat during the quarter as the increase in new test systems business was offset by a 4 percent dip in aerospace bookings. The company's $99 million backlog of orders was up 7 percent from a year ago.

Astronics said it now expects its sales this year to range between $210 million and $225 million, up from its previous forecast of $205 million to $210 million.

The company also said it is spending $10.3 million to buy the facility in Fort Lauderdale, Fla., used by its test systems business, as well as build a new factory for its fast-growing cabin electronics business in Redmond, Wash. The Washington expansion is expected to cost an additional $5 million to $8 million over the next 18 months in build-out and occupancy costs.

drobinson@buffnews.comnull