CPI Aerostructures Q4 Profit Down; Names Douglas McCrosson President And CEO

(RTTNews) - CPI Aerostructures Inc. (CVU) reported that its fourth-quarter net income dropped to $2.37 million or $0.28 per share, from $3.60 million or $0.43 per share in the same quarter last year.

Revenues for the quarter declined to $21.29 million from $27.36 million in the prior year quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share and revenues of $14.33 million for the quarter. Analysts' estimates typically exclude special items.

Looking beyond this year to 2015, the company sees continued strength in production rates of its business jet programs, steady production on its more mature programs and new programs that combined could produce the highest revenue in its history. Likewise, as unit costs decrease with increased build rates, it expects gross margin in full year 2015 to be higher than in 2014.

The company expects to be in a position to offer more definitive guidance for 2014 and 2015 when it announces its first quarter 2014 earnings in May.

In a separate press release, CPI Aerostructures announced that long-time the company's executive and Chief Operating Officer Douglas McCrosson has been named President and Chief Executive Officer effective today, March 6, 2014. McCrosson has also been appointed to the Company's board of directors.

Edward Fred has resigned as President and Chief Executive Officer and as a director of the Company. Fred resigned for personal reasons. Fred will remain with CPI Aero in an advisory capacity until May 16, 2014 and as a consultant to the Company until November 16, 2015.

McCrosson, age 51, joined CPI Aero in 2003 as Director of Business Development. During his tenure, he has held positions of increasing responsibility, including Vice President of Business Development and Senior Vice President of Operations, where he headed CPI Aero's business development, engineering, procurement and manufacturing organizations. McCrosson has been the Company's Chief Operating Officer since January 2010.