Rocket-engine manufacture Aerojet Rocketdyne posted a nearly four-fold increase in second-quarter profit, as operational restructuring began to yield promised cost efficiencies.
The El Segundo, Calif.-based company — which moved its headquarters from the Sacramento area last year, then closed a large plant there to consolidate manufacturing in Alabama — reported $24.3 million in net income during for the most recent quarter. That’s up from $5.9 million in the year-earlier period.
Aerojet reported a 13 percent rise in quarterly revenue, to $459.6 million.
“Favorable contract performance from cost reductions, labor efficiencies and lower program risks drove $10.3 million of favorable contract estimates in the current quarter,” CEO Eileen Drake said. “We achieved several important production and development milestones in the second quarter. (The company) was also selected by Boeing to be the main propulsion provider of the Defense Advanced Research Projects Agency’s new experimental spaceplane, the XS-1. These program accomplishments, along with our second quarter sales, profit and cash flow improvements, demonstrate our focus on long-term value creation for both our customer and investor stakeholders.”
In May, Aerojet announced it had completed critical design reviews on its new rocket engine, the AR-1.
Aerojet (NYSE: AJRD) announced its quarterly financial results after the close of market trading Aug. 3, when its shares closed up 29 cents, or 1 percent, at $23.82. The stock has a 52-week trading range of $16.04-$24.12.