Jeremy Jason's questions to Ducommun Inc (DCO) leadership • Q4 2024
Question
Jeremy Jason of Citi, on behalf of Jason Gursky, asked for a breakdown of the Q4 margin decline in the Structural Systems segment between product mix and temporary costs, and inquired about the relative profitability of Boeing versus Airbus programs.
Answer
Executive Suman Mookerji clarified that the Q4 margin decline in Structures was split evenly between unfavorable product mix and onetime expenses, both of which are not expected to persist, with a full recovery anticipated in Q1. He declined to compare customer profitability directly but affirmed that the company is actively pursuing value-pricing initiatives with all customers to ensure adequate margins.