Alexandra Eleni Mandery's questions to Ducommun Inc (DCO) leadership • Q4 2024
Question
Alexandra Eleni Mandery of Truist Securities questioned a $3.1 million legal fee on the cash flow statement related to an unsolicited acquisition offer and asked for the company's outlook on potential Department of Defense (DOD) budget changes.
Answer
Executive Suman Mookerji explained the legal fees were for advisors responding to an unsolicited offer from Albion River, which has since divested its stake, and these costs are not expected to recur. CEO Stephen Oswald reiterated confidence in Ducommun's diversified defense portfolio, stating they feel well-positioned despite potential budget shifts, with the F-18 wind-down already factored into their baseline.