Rocket-engine manufacturer Aerojet Rocketdyne, which has been on an extended drive to cut costs and raise profitability, has reported a 16 percent rise in first-quarter net income, to $5.9 million.
The El Segundo, Calif.-based company has been undertaking a companywide campaign to trim overhead and consolidate its facilities. Aerojet recently announced plans to shift manufacturing operations from its main plant in Rancho Cordova, Calif., to other locations including primarily a plant in Huntsville, Ala. The company said the closure, and related other prior and planned consolidations moves, would result in corporate savings of $230 million annually.
“Our strong first quarter year over year growth in net sales is a reflection of our continued commitment to delivering on our programs,” Aerojet chief Eileen Drake said. “We look forward to continuing our affordability initiatives, while maintaining a focus on strengthening our overall competitiveness and driving value for our various stakeholders.”
Aerojet Rocketdyne was formed in 2013 from the merger of GenCorp.-owned Aerojet and Pratt & Whitney Rocketdyne. It currently is developing a next-gen engine, dubbed the AR-1, with an aim of convincing United Launch Alliance to use it in its Atlas V rocket.
Aerojet announced its quarter financial results after the close of stock market trading on May 8. Its shares (NYSE: AJRD) fell 9 cents on the day to close at $22.