LMI Aerospace Inc. (LMIA), a supplier of structural assemblies, kits and components to aerospace markets, Friday said it now expects fiscal 2016 net sales between $345.7 million and $346.7 million, compared to previous estimate of $345.0 million to $355.0 million.
On average, four analysts polled by Thomson Reuters expect revenues of $350.33 million for the year. Analysts' estimates typically exclude special items.
Adjusted operating profit for the year is now expected to be $13.5 million to $14.5 million, lower than previous estimate of $18 million to $21 million.
The company said its expected results for 2016 were negatively impacted by lower sales primarily due to customer delays, unanticipated engineering changes on a design-build contract, and higher-than-expected medical costs.
LMI expects to release fourth quarter and full-year results for 2016 in March 2017.
Separately, LMI Aerospace said it has entered into a merger agreement to be acquired by Belgium -based aerostructures company Sonaca Group. Under the agreement, LMI shareholders will receive $14 per share in an all-cash transaction.
Sonaca's offer represents a 52 percent premium over LMI's closing share price on February 16, a 63 percent premium over LMI's 3-month volume weighted average price, and a 78 percent premium over LMI's 6-month volume weighted average price.
LMI's independent directors unanimously approved the transaction. The deal is expected to close mid-2017, subject to LMI shareholder approval as well as certain regulatory approvals and other customary closing conditions.
Upon transaction close, LMI will operate as LMI Aerospace - A Member of the Sonaca Group, and Dan Korte will continue to serve as LMI Aerospace CEO and will report directly to Bernard Delvaux, Sonaca chief executive officer.
by RTT Staff Writer
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