GenCorp Posts Loss In Q2 Amid Higher Expenses

(RTTNews) - Aerospace and defense products maker GenCorp Inc. (GY) Tuesday reported a loss for the second quarter, amid higher expenses incurred for a recent acquisition.

The company reported a net loss of $11.8 million or $0.20 per share, compared to net income of $1.7 million or $0.03 per share for the year-ago period.

The latest results included $6.8 million increase in interest expense related mainly to the financing of the acquisition of United Technologies Corp.'s Pratt & Whitney Rocketdyne as well as expenses of $6.4 million related to the acquisition the Rocketdyne Business.

The results also included $5.8 million increase in non-cash retirement benefit expense and $1.8 million increase in stock-based compensation.

Net sales climbed to $286.6 million from $249.9 million in the prior year.

In Aerospace and Defense Segment, net sales rose 15 percent to $285.4 million, while Real Estate Segment sales fell to $1.2 million from $2.2 million.

The increase in Aerospace and Defense Segment net sales stemmed from an increase in various Standard Missile programs primarily due to increased development activities for the Throttling Divert and Attitude Control System for the Standard Missile-3 Block IIA program and increased deliveries on the Standard Missile-1 Regrain program.

Increased deliveries on the Atlas V program also generated additional sales of $13.9 million for the segment.

GY closed at $16.88 on Monday.