Unifying an Organization through a Shared Vision Joel Benkie Joel - - PDF document

The Aerospace & Defense Forum April 4, 2013 1

Unifying an Organization through a Shared Vision

Joel Benkie Joel Benkie

Chief Operating Officer Ducommun Incorporated

Company Overview

• Founded in 1849
• Today, Ducommun is a global leader in manufacturing

sophisticated solutions for the aerospace, defense, industrial and natural resources markets

– Broad capabilities support more advanced, higher value‐added Tier 2 systems and assemblies – Focused, niche approach capitalizes on growing market demand – Long‐term relationships with blue‐chip customers

$

• $747 million in annual sales (2012)
• 22 manufacturing and engineering operations in 13 states,

Mexico and Thailand

• 3,400 employees companywide

2

The Aerospace & Defense Forum April 4, 2013 2

Two Operating Units

Ducommun Incorporated Incorporated

Ducommun AeroStructures (DAS)

41% of 2012 Sales

Ducommun LaBarge Technologies (DLT) and Ducommun Miltec

59% of 2012 Sales 3

Customer‐focused business model that is uniquely organized to fully support our customers’ increasing demand for more advanced integrated systems.

Ducommun AeroStructures (DAS)

Designs, engineers and manufactures large, complex contoured aerostructure components and assemblies

Product Offering

Commercial Aircraft

Fuselage skin panels & assemblies Flight control surface assemblies Leading edges

Military Fixed Wing Aircraft

Fuselage skin panels & assemblies Flight control surface assemblies Various door panels Leading edges Composite Winglets 4 Leading edges Engine ducts

Military and Commercial Rotary Wing Aircraft

Main & tail rotor blade assemblies Leading edges Firewall exhaust assemblies Sub‐assemblies Fuselage Skins and Assemblies Flight Control Surface Assemblies Exhaust Systems and Engine Ducts Rotor Blade Assemblies

The Aerospace & Defense Forum April 4, 2013 3

Ducommun LaBarge Technologies (DLT)

Designs, engineers and manufactures high‐reliability electronic and electromechanical systems and subsystems

Product Offering Product Offering

Turnkey design, engineering, assembly and test Cable assemblies, wire harnesses and interconnect systems PCB assemblies and microelectronics/hybrid circuits Box‐build, electromechanical and mechanical systems Engineered products d k l bl Design, Engineering and Test Interconnect Systems 5 – Integrated cockpit control assemblies – Lighted panels and switch products – RF products (MW & mmW) – Motors and resolvers Systems integration Logistics After‐market support Complete System Builds Integrated Mechanical Assemblies Box‐Level Assemblies Printed Circuit Board Assemblies

Ducommun Miltec

Provides highly technical system solutions and engineering support for missile and space applications

Product Offering

Missiles and Space Core Capabilities

Missiles, satellites, KVs Inertial nav systems Lasers

Systems Core Capabilities

Test management and planning Range and operations support

Product Offering

6 Systems engineering and integration

Research and Technology Core Capabilities

Basic and applied research in acoustics Aviation and UAV sensors Cruise missile detection and tracking

The Aerospace & Defense Forum April 4, 2013 4

Where We’re Located

Ducommun in California

• Headquartered in Carson

Headquartered in Carson

• $251 million in 2012 net

sales generated by California plants

• 5 manufacturing plants

providing aerostructures and technology products used worldwide

• 1,100 employees

7

Thailand

Diverse End Markets and Platforms

Medical/

KEY AEROSPACE PLATFORMS

• Commercial aircraft programs

2012 Annual Sales – $747 million

Defense Structures 19% Defense Industrial 8% Natural Resources 8% / Other 6%

• Commercial aircraft programs

–Boeing 737NG, 747, 777 and 787 –Airbus A330, A340, A350 and A380

• New commercial aircraft
• pportunities

–737 MAX –A320 NEO

8

Defense Technologies 32% Commercial Aerospace 27%

• Military platforms

–Black Hawk –JSF –V‐22

The Aerospace & Defense Forum April 4, 2013 5

Our Rich History

• 1849: Founded in Los Angeles by Charles Louis Ducommun as

a watch business, then general store, during the Gold Rush

• 1920s: Assists in birth of the aerospace industry in
• 1920s: Assists in birth of the aerospace industry in

Southern California; provides aircraft aluminum to early aerospace pioneers Lindbergh, Douglas and Lockheed

• 1950s: Becomes largest metals materials supplier to the

aerospace industry in SoCal

• 1960s: Diversifies into distribution of electronic components

to the aerospace industry

• 1999 – 2000s: Expands capabilities through small acquisitions
• 2011: Acquires electronics manufacturing services leader

LaBarge, Inc. in a transformational acquisition

9

Unifying Two Companies

• Acquisition of LaBarge, Inc. – Merger of Two Equals

– Doubled the size of Ducommun – revenues manufacturing – Doubled the size of Ducommun revenues, manufacturing plants, employees – Expanded Ducommun’s capabilities to include sophisticated electronics manufacturing and technology solutions

• Integration versus Unification

– Common vision Common vision – Way of doing business – Goal setting – Measuring results

10

The Aerospace & Defense Forum April 4, 2013 6

PROPRIETARY & CONFIDENTIAL

12

The Aerospace & Defense Forum April 4, 2013 7

13

Creating a Shared Vision

14

The Aerospace & Defense Forum April 4, 2013 8

16

The Aerospace & Defense Forum April 4, 2013 9

17 18

The Aerospace & Defense Forum April 4, 2013 10

19 20