Air Industries Group Thursday posted a small gain in second-quarter sales, a narrower net loss, and projected that fourth quarter revenue and cash flow should be its highest ever.
The Hauppauge aerospace manufacturer reported a net loss of $252,000, or 4 cents per diluted share, versus a net loss of $601,000 or 8 cents per diluted share, in the year-ago quarter. Net sales rose 1.6 percent year-over-year to $19.4 million.
Shares of Air Industries, a maker of landing gear, turbine engine components and air-to-air refueling systems, rose 6.5 percent to close at $4.40 on the New York Stock Exchange. The shares are down about 50 percent in the past year.
“Progress is expected to expand materially in the third quarter, as we are working feverishly throughout the quarter on products which we expect to ship in the fourth quarter,” chairman Michael Taglich said in a statement. “Fourth quarter revenue and EBITDA [earnings before interest, taxes, depreciation and amortization] should set company records. It is my hope and expectation that, from there, we will not look back.”
Thirty-seven-year-old Air Industries has grown by acquiring small, family-owned manufacturers, in many cases when the original owner was nearing retirement.
In a conference call Thursday, chief financial officer Michael Recca said that the company is pursuing a two-track acquisition strategy: “smallish acquisitions” that can be integrated into current facilities, and strategic stand-alone acquisitions “that could bring us new customers and new lines of business.”
Though the company’s funded order backlog points to strong growth in the fourth quarter, Recca declined to offer a specific revenue forecast.
Chief executive Daniel Godin said that Air Industries will become less reliant on the military market as the company’s sales of commercial turbine and engine components increase.
“We’ll naturally come to be less dependent on the military platforms,” he said.
In June, the company announced an agreement to take about 10,000 square feet in a facility of Cincinnati-based Meyer Tool Inc. in Kalisz, Poland. The two companies will provide advanced welding services in the production of General Electric turbines for power plants.
Godin said that he expects to see revenue growth from the Poland unit and that Air Industries also is investigating the production of military air craft parts in Poland.