Ducommun reports third-quarter net income more than tripled from a year ago.

(ASE/PSE:DCO) Monday reported a 56 percent increase in sales and a 261 percent increase in net income in the third quarter of 1995 from the year-earlier period.

For the third quarter of 1995, sales were $24,080,000, with net income of $1,653,000, or 27 cents per share. This compares with sales of $15,460,000 and net income of $458,000, or 10 cents per share, in the third quarter of 1994.

For the nine months of 1995, sales were $67,903,000, with net income of $3,238,000, or 57 cents per share. This compares with sales of $45,506,000 and net income of $1,686,000, or 37 cents per share, for the comparable period in 1994.

Sales increased principally as a result of acquisitions made in late 1994 and early 1995, and increased off-load work for aircraft structural components from prime contractors and major subcontractors.

During the third quarter, a subsidiary of Ducommun also entered into a marketing agreement with Kabool Ltd. in South Korea, and third-quarter sales benefited from the initial delivery of wireless- communications products pursuant to this agreement.

Net income increased faster than sales in the third quarter as gross profit margins expanded to 33.8 percent in 1995 from 28.4 percent in 1994. Substantial increases in gross profit margins were realized because of the economies of scale resulting from sales increases and improvements in production efficiencies.

Norman A. Barkeley, chairman, chief executive officer and president, stated: ``The third-quarter results once again exceeded our expectations. Based on the current level of operating activity, we expect to continue our strong performance in the fourth quarter.''

Looking ahead to 1996, Barkeley continued: ``The current level of strong quoting activity is encouraging. Ducommun is benefiting as the prime contractors and major subcontractors off-load the manufacture of aircraft structural components in order to reduce production costs.

``At the same time, Ducommun's airline-aftermarket seating business is benefiting from a similar trend as airlines worldwide attempt to reduce their cost structures.''

Because of the strong operating results, Ducommun is reducing acquisition-related debt more quickly than anticipated. In addition, Ducommun ended the third quarter of 1995 with a cash balance of $2,998,000, as compared with $41,000 at the end of the prior quarter.

In view of its growing cash position, Ducommun is exploring the possibility of calling or making a conversion offer for a portion of its currently outstanding 7-3/4 percent convertible subordinated debentures, which are convertible into common stock at $9.98 per share.

Such a transaction would reduce debt and increase shareholders' equity, and would provide Ducommun with additional flexibility in financing future acquisitions. In addition, the issuance of new shares on such a conversion would not have any dilutive effect on the company's fully diluted earnings per share in 1995.

The timing and amount of debentures involved in such a transaction will depend upon a variety of factors, including the market price of Ducommun's common stock and general economic conditions.

Ducommun manufactures components and assemblies for the aerospace and wireless-telecommunications industries.

For more information, contact Joseph C. Berenato, executive vice president, chief operating officer and chief financial officer, Ducommun Inc., 23301 S. Wilmington Ave., Carson, Calif. 90745; telephone [phone]. -0-

                     DUCOMMUN INC. AND SUBSIDIARIES
                            Comparative Data
                      Consolidated Income Statement

                          Three months ended         Nine months ended
                         Sept. 30,     Oct. 1,     Sept. 30,     Oct. 1,
                           1995         1994         1995         1994
Net sales           $24,080,000  $15,460,000  $67,903,000  $45,506,000
Earnings before
 interest and taxes   3,221,000    1,233,000    7,292,000    4,306,000
Interest expense       (984,000)    (601,000)  (2,853,000)  (1,867,000)
Income-tax expense     (584,000)    (174,000)  (1,201,000)    (753,000)
Net income          $ 1,653,000  $   458,000  $ 3,238,000  $ 1,686,000
Earnings per share:
 Primary               34 cents     10 cents     68 cents     37 cents
 Fully diluted         27 cents     10 cents     57 cents     37 cents
Weighted average number
 of common and common-
 equivalent shares
 outstanding for
 computation of
 earnings per share:
 Primary              4,880,253    4,596,807    4,783,269    4,566,311
 Fully diluted        7,706,693    4,596,807    7,703,866    4,566,311

CONTACT: Ducommun Inc., Carson

Joseph C. Berenato, 310/513-7251

or

Mickaelian Associates, South Pasadena, Calif.

Fred Mickaelian Jr., 213/268-1152