Aerojet Rocketdyne returned to third-quarter profitability, as boosted focus on lower-risk projects helped the rocket-engine maker post $12.6 million in net income compared with a year-earlier loss of $11.1 million.
Aerojet reported a 4 percent increase in third-quarter sales to $484.1 million. CEO Eileen Drake said the company ended up enjoying higher proceeds from its quarterly contract work than originally projected.
“Our continued focus on contract execution contributed to our solid earnings growth,” CEO Drake said. “Favorable contract performance from lower program risks and expected costs drove $11.5 million of favorable changes in contract estimates in the current quarter.”
In a move related to an operational realignment last year, Aerojet broke ground on a new Advanced Manufacturing Facility in Huntsville, Ala., last month. Drake said construction is moving apace and the facility is expected to begin production of “high-quality and affordable aerospace products for our customers by the end of 2019.”
Aerojet released its upbeat earnings report after the close of market trading Nov. 2, with its shares (NYSE: AJRD) closing the session up $1.31, or 4 percent, at $32.15.