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LMI Aerospace posts first quarter higher sales, lower net income

LMI Aerospace, parent company to Leonard’s Metals in Wichita, recorded net sales in the first three months of the year of $64 million, versus $60.4 million for the same time a year ago.

Net income, meanwhile, declined to $3.4 million in the quarter, or 30 cents per diluted share, from $4.5  million  a year ago.

Earnings were affected by expenses related to the purchase of Intec, closing its TCA subsidiary and severance and restructuring charges related to work force reductions, the company said.

In addition, the company was affected by reduced demand for large cabin Gulfstream aircraft because of production rate cuts announced in March, and by inventory reductions related to the action.

The company continues to receive orders for components and subassemblies for the Boeing 747-8 freighter, and it’s beginning to receive orders for the passenger model. It also is expecting demand for Blackhawk products.

“The market environment is still challenging and we are working to cover anticipated future production rate cuts in 2010 with new program awards,” said LMI Aerospace president and CEO Ronald Saks in a statement.