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Sales slip, profit edges up at CPI Aerostructures

CEO Douglas McCrosson said a decline in F-16 revenue was related to a "timing issue" and that sales in 2018 are expected to increase.

CEO Douglas McCrosson, center at CPI Aerostructures in

CEO Douglas McCrosson, center at CPI Aerostructures in Edgewood in 2016, said a decline in F-16 revenue was a "timing issue" and sales in 2018 are expected to increase. Photo Credit: Barry Sloan

Aerospace contractor CPI Aerostructures Inc. Tuesday reported lower year-over-year sales in the first quarter as revenue declined in contracts on the F-16 jet fighter and the E-2D command and control aircraft.

Revenue in the period ended March 31 edged down to $18.2 million, versus $20 million in the 2017 period.

Still, net income inched up to $1.3 million, or 14 cents per diluted share, from $1.2 million, also 14 cents per diluted share, on lower income taxes.

Douglas McCrosson, president and chief executive of CPI Aero, described the F-16 revenue decrease as a "timing issue" and said sales are expected to increase in fiscal 2018.

Shares in CPI Aero fell 1 percent Tuesday to close at $10. The Edgewood company released its earnings before the market open on Tuesday.

"We delivered a fourth consecutive quarter of profitability on the strength of strong operational performance and continued cost control," McCrosson said in a statement.

McCrosson said the declines in revenue from the F-16 wing component and E-2D outer wing panel kit contracts were not fully offset by higher revenue from contracts on a radar jammer pod and the T-38 supersonic jet trainer.  

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