Ducommun Inc.

Ducommun Inc,

DUCOMMUN INCORPORATED - A FINANCIAL ANALYSIS

Ana Miramontes

Keller Graduate School of Management

Securities Analysis

FIN560

Professor Kasthuri Henry

June 15, 2013

DUCOMMUN INCORPORATED - A FINANCIAL ANALYSIS

Charles Ducommun settled in California during the Gold Rush, he never would have imagined the impact this move would make his future and the future of investors in the stock market. According to Ducommun Incorporated’s website, Ducommun began operations in 1849 as small hardware store in Los Angeles, California. The company has since then evolved into a $600 million dollar company (Ducommun Incorporated, n.d.). In the early years of the aerospace industry, Ducommun Incorporated provided aircraft aluminum to aircraft makers. The company has completely evolved – there is no semblance of what used to be a hardware store. Today the firm is a premier provider of engineering and manufacturing services in the areas of defense, aerospace, mining, the petroleum industry and the medical field. Ducommun Incorporated has three major divisions: Ducommun Aero Structures (DAS), Ducommun LaBarge Technologies (DLT) and Ducommun Miltec. Together, these three units generated over $747 million in revenue for fiscal year ended 2012 and returned an EPS of $1.55 to their shareholders.

As part of the aerospace and defense industry and the electronic manufacturing services, Ducommun is still in a mature life cycle. However, due to the ever-changing technological world we live in, the leadership team has strategically positioned the firm into a growth life cycle through expansion and acquisition. Economic uncertainty and slowing global growth for some aerospace and defense products products has lead the industry executives to seek consolidation, expansion into new geographies, and new product development outside the aerospace and defense industry (Aerospace & Defense 2012 Industry Outlook Survey, 2012, p. 7). Ducommun Incorporated recently...