Get the latest news and trends on Long Island companies and the people behind them.
CPI Aerostructures reports rising 4Q sales
Despite government cutbacks, Edgewood aircraft parts maker CPI Aerostructures Inc. on Tuesday said its fourth-quarter rose sharply on orders from Gulfstream and Boeing.
The company’s net income increased 35 percent, to $3.6 million or 43 cents per share, during October, November and December compared to the same period last year. Sales climbed 14 percent, to $27.4 million.
Nonetheless, sales fell short of the $30.5 million that analysts had initially anticipated. Last month, CPI said it expected fourth-quarter revenue to be lower than anticipated on concerns that law makers would fail to reach a budget deal to avert automatic spending cuts, known as the “sequestration.”
CPI president and chief executive Edward J. Fred said he expected the cuts to continue hampering the company’s bottom line, saying sales would likely fall to 2011 levels and would stem increasingly from private contracts rather than government ones.
“Our new business opportunities remain strong, as we are bidding on larger and more complex contracts, including contracts for large commercial aircraft parts,” Fred said.
CPI stock fell 1.75 percent in early trading, to $8.35 a share.