Higher R&D costs combined with slowed sales of key products to prompt second-quarter dips both in profit and sales for rocket-engines maker Aerojet Rocketdyne.
Quarterly revenue slid 11 percent to $408.4 million.
The aerospace and defense contractor also saw its contracts backlog decline 7 percent to $3.8 billion.
CEO Eileen Drake stressed the company maintained healthy cash flow during the first half of the year. It was off significantly due to a difficult comparison with a year-ago period inflated by a one-time real estate gain but still totaled $3.8 million.
“The stability of our aerospace and defense operating margin in the second quarter of fiscal 2016 supports our belief that our Competitive Improvement Program initiatives are effective and sustainable,” Drake said. “We continue to realize significant progress on our strategic journey to achieve long-term success.”
She noted the company recently expanded its assembly operations at NASA’s Stennis Space Center to facilitate production of its important next-gen AR1 engine. The company also recently announced some organizational realignments in its operations.
Aerojet (NYSE: AJRD) announced its financial results after the close of market trading Aug. 9, when shares closed 32 cents lower at $18.60 amid modestly upbeat broader trading. That was roughly midway between the stock’s 52-week high of $23.46 and low of $13.98.