Astronics Corporation, a supplier of advanced technologies and products to the global aerospace, defense and other mission-critical industries, has reported financial results for the three-months ended September 28, 2019. Financial results include the divestiture of the Test Systems’ semiconductor business on February 13, 2019.
Consolidated sales were down US$35.7 million including sales of the semiconductor business which was divested in the first-quarter of 2019. Excluding the divestiture, adjusted consolidated sales were down 2.4%, or US$4.3 million.
Consolidated operating income decreased to US$5.1 million compared with US$18.3 million in the prior-year period. Adjusted consolidated income from operations excluding the sales and direct expenses attributable to the divested semiconductor test business was US$3.2 million, or 1.8% of adjusted consolidated sales, compared with US$8.0 million, or 4.5% of adjusted consolidated sales, in the prior-year period.
Impacts to operating income and margin included tariff expenses of US$3.2 million and a US$1.7 million increase to a legal reserve for a long-term patent dispute. Also impacting operating income were operating losses of US$9.2 million related to the three challenged Aerospace businesses, which included a program charge of US$2.2 million. Operating losses related to the three challenged Aerospace businesses were US$11.2 million in the third-quarter of 2018 and US$7.7 million in the preceding second-quarter of 2019.
The third quarter had a US$1.3 million loss on the sale of a business related to the sale of intellectual property and certain assets associated with the Airfield Lighting product line which was divested in July.
The effective tax rate for the quarter was 31.3%, compared with a tax benefit recorded in the third quarter of 2018. The 2019 third quarter tax rate was unfavorably impacted by the tax associated with the gain on the sale of the semiconductor business.
Net income was US$1.2 million, compared with US$17.0 million in the prior year.
