Santa Clarita-based aerospace parts supplier Wesco Aircraft Holdings saw its second-quarter net profits dip slightly to $19.7 million (21 cents per share) from $21.9 million (24 cents) one year earlier.
“The decrease was driven by higher selling, general and administrative expenses, including significant costs associated with operating as a public company, additional costs to support new contracts that have not fully ramped up, as well as a $2.2 million favorable recovery of bad debt expense in the prior year period,” the company said in a statement.
Overall revenues increased by 3.5 percent during the quarter to $182.1 million, driven by a 22.8-percent increase in foreign markets.
“During the second quarter we reported modest year-on-year revenue growth, and continued to see the benefits of our long-term investment in international markets,” CEO Randy Snyder said. “As we have made progress in the implementation of several new contracts, we have found that the level of existing inventory at some customers was higher than expected. Due to this fact, it will take longer to reduce the inventory on-hand and ramp-up sales of products provided by Wesco. Because of this, we believe it is appropriate to revise our financial outlook for the full year based on what we are seeing today.”
The company revised its full-year 2012 guidance to $$740 million to $760 million, representing a growth rate of 4 percent to 7 percent over 2011 levels versus a previously anticipated growth rate of 7 percent to 10 percent. Diluted earning per share should come in at 88 cents to 93 cents – down from a previously anticipated 98 cents to $1.02 – with adjusted diluted earnings coming in at 92 cents to 97 cents.
Wesco’s services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery and point-of-use inventory management for aerospace companies and carries 475,000 different items in stock including hardware, bearings, tools, electronic components and machined parts. Headquartered in the Valencia Industrial Center, Wesco has more than 1,000 employees across 30 locations in 10 countries.