Wesco Aircraft reported net sales, including fasteners, slipped 5.7% to $339.4 million in its fiscal 2017 first quarter ended December 31, 2016. Constant-currency sales decreased 1.9%.

Gross profit declined 7.3% to $89.5 million. Gross margin was 26.4%  in the fiscal 2017 first quarter, compared with 26.9% in the same period last year, primarily reflecting changes in mix.

Q1 income from operations totaled $26.3 million, or 7.7% of net sales, down from $37.1 million, or 10.3% of net sales, in the same period last year. Net income fell 36% to $13.1 million.

“Our fiscal 2017 first-quarter results were negatively impacted by foreign currency translation, temporary disruptions to certain customers’ consumption patterns due to operational changes and extended site closures, and late production schedule revisions made by a major commercial OE customer,” stated CEO Dave Castagnola.

“The challenges created by these events were partially offset by sales realized from recent new business wins.”

The company’s effective tax rate was 15.3% in the first quarter of fiscal 2017, compared with 28.9% in the year-ago quarter, primarily due to discrete tax items.

Wesco Aircraft forecasts sequentially increasing sales in the remaining quarters of fiscal 2017. Web: wescoair.com