Astronics Corporation (NASDAQ: ATRO), a supplier of advanced technologies and products to the global aerospace, defense, and semiconductor industries, has reported financial results for the three and six months ended July 1, 2017, the company said.
Consolidated sales were down USD 13.3 million from the same period last year. Aerospace segment sales of USD 129.5 million were down USD 13.0 million and Test Systems segment sales of USD 21.6 million were essentially flat, down USD 0.3 million.
Consolidated gross margin was 22.6% in the second quarter of 2017 compared with 27.3% in the second quarter of 2016. Consolidated gross margin was negatively affected by lower organic sales volumes coupled with the CCC acquisition having a significantly lower margin profile at this point in its business cycle, compared with the organic business. Organic Engineering and Development (“E&D”) costs were USD 21.7 million in the quarter, up from USD 21.4 million of E&D costs in last year´s second quarter. As a percent of sales, organic E&D costs were 14.4% and 13.0% in the second quarters of 2017 and 2016, respectively. CCC incurred E&D costs of USD 1.2 million since its acquisition.
Selling, general and administrative (“SG&A”) expenses were USD 22.4 million, or 14.8% of sales, in the second quarter of 2017 compared with USD 22.2 million, or 13.5% of sales, in the same period last year.
The effective tax rate for the quarter was 27.3%, compared with 30.5% in the second quarter of 2016. The 2017 second quarter tax rate was favorably impacted by the federal research and development tax credit.
Astronics is a supplier of advanced technologies and products to the global aerospace, defense and semiconductor industries. Astronics´ products and services include advanced, high-performance electrical power generation and distribution systems, seat motion solutions, lighting and safety systems, avionics products, aircraft structures, systems certification and automated test systems.