ST. LOUIS, Aug. 6, 2008 (PRIME NEWSWIRE) -- LMI Aerospace, Inc. (Nasdaq:LMIA), a leading provider of design engineering services, structural components, assemblies and kits to the aerospace, defense and technology industries, today announced it achieved record sales and earnings in the second quarter of 2008.

Net sales in the quarter ended June 30, 2008, were $64.9 million compared to $33.9 million in the quarter ended June 30, 2007. Net income for the second quarter of 2008 increased to $5.0 million, or $0.45 per diluted share, compared to $2.9 million, or $0.26 per diluted share, in the second quarter of 2007. The current-year results include D3 Technologies Inc., acquired on July 31, 2007.

For the six months ended June 30, 2008, net sales were $125.3 million compared to $66.1 million in the six months ended June 30, 2007, an increase of 90 percent. Net income for the first six months of 2008 was $9.5 million or $0.84 per diluted share, compared to $5.1 million or $0.46 per diluted share in the first half of 2007.

"Demand from the major customers in our Aerostructures segment increased steadily as we progressed through the second quarter and our manufacturing centers responded with the focus and execution that they consistently deliver," said Ronald S. Saks, President and Chief Executive Officer of LMI Aerospace, Inc. "Our Engineering Services segment also continued to add employees and handle record demand from its key customers in an exemplary fashion. The Engineering Services group has enhanced the product and service offerings of our Aerostructures group and helped us manage large projects on newly developed aircraft. We are pleased that the integration of D3 into LMI has progressed so well."

In the Aerostructures segment, net sales were a record $41.6 million in the second quarter of 2008, up 22.7 percent from $33.9 million in the second quarter of 2007. Sales of military products increased 41.0 percent to $11.7 million or 28.1 percent of sales, from $8.3 million or 24.6 percent of sales in the second quarter of 2007, due to higher production rates and new awards on the Black Hawk helicopter. Sales of products for corporate and regional aircraft in the second quarter of 2008 increased 23.7 percent to $14.1 million or 33.9 percent of sales, compared to $11.4 million or 33.6 percent of sales in the second quarter of 2007. Increased production rates on Gulfstream aircraft continue to fuel the growth. Sales of products used in large commercial aircraft in the second quarter of 2008 were $12.4 million or 29.8 percent of sales, compared to $11.4 million or 33.6 percent of sales in the year-ago quarter. The 8.8 percent increase was driven by increased production rates for certain models of Boeing aircraft, most notably the Boeing 737.

Net sales for the second quarter of 2008 for the Engineering Services segment, comprised entirely of the operations of D3 Technologies, were $24.0 million. Net sales of engineering services for large commercial aircraft were $11.2 million or 46.7 percent of segment sales, primarily for design programs supporting Boeing 747-8, 787 and 777-Freighter platforms. Net sales for corporate aircraft were $8.4 million or 35.0 percent of sales, primarily on the Gulfstream G650 and other developmental aircraft. Military programs generated net sales of $3.0 million or 12.5 percent of sales and included services provided for multiple Navy programs, Lockheed F-35 and various other programs. Tooling projects constituted the remainder of the segment's sales.

Gross profit for the second quarter of 2008 was $16.7 million or 25.7 percent of sales compared to $9.2 million or 27.1 percent of sales in the second quarter of 2007, which preceded the acquisition of D3 Technologies. In the second quarter of 2008, gross profit for the Aerostructures segment was $11.8 million or 28.4 percent of sales versus $9.2 million or 27.1 percent of sales in the year-ago quarter, as the company benefited from higher production rates. Gross profit for the Engineering Services segment for the second quarter of 2008 was $4.9 million or 20.4 percent of sales.

Selling, general and administrative expenses were $8.3 million in the second quarter of 2008, including $2.3 million from Engineering Services, or 12.8 percent of sales, compared to $4.9 million or 14.5 percent of sales in the year-ago quarter. SG&A expenses for the Engineering Services segment include $0.7 million of stock-based compensation related to restricted stock awards and amortization of intangibles resulting from the acquisition of D3 Technologies Inc. Net interest expense in the second quarter of 2008 was $416,000, compared to interest income of $185,000 in the second quarter of 2007. Income taxes in the second quarter of 2008 were $2.9 million, compared to $1.5 million in the year-ago quarter. The effective tax rate in the second quarter of 2008 was 36.5 percent compared to 34.9 percent in the year-ago quarter. The 2008 rates were negatively impacted by a higher state income tax rate.

The backlog at June 30, 2008, was $163 million, up from approximately $141 million at June 30, 2007. The 2008 backlog does not reflect certain Gulfstream orders, which were included in the 2007 backlog.

LMI also announced updated guidance for the full year 2008, reflecting an improved outlook for the Engineering Services segment.



   Revenue:  $249 million - $265 million (Aerostructures: $162 million
    - $172 million; Engineering Services: $87 million - $93 million)

   Gross margin:  25.0% - 26.0% (Aerostructures: 28% - 29%;
   Engineering Services:  19.5 % - 20.5%).

   SG&A expenses:  $32.5 million - $33.5 million, including $2.5
   million in acquisition-related expenses (Aerostructures:  $24
   million - $24.5 million; Engineering Services:  $8.5 million - $9
   million).

   Interest expense:  $1.6 million - $1.8 million.

   Tax rate:  Approximately 36.5%

   Capital expenditures:  $8 million - $9 million.

"As we look at the second half of 2008 and beyond, the anticipated growth in revenues is expected to result in increased production rates and market-share gains in the military segment, higher tooling revenue from new projects on the Gulfstream G650, the Boeing 747-8 and other new programs; customer offload programs on the Boeing 747-8; and the start of production of the Boeing 767 wing modification kit and winglet assemblies," Saks said. "These programs are expected to add to revenue in 2009 as well. LMI continues to build a responsive project management organization in both segments in order to provide unique services to our customers. As we continue along the path to producing design build products, we are aggressively pursuing acquisitions and studying greenfield investments in composites and high-speed machining in order to provide the products our customers require."

LMI Aerospace, Inc., which celebrates its 60th anniversary in 2008, is a leading provider of design engineering services, structural components, assemblies and kits to the aerospace, defense and technology industries. Through its Aerostructures segment, the company fabricates machines, finishes and integrates formed, close-tolerance aluminum and specialty alloy components and sheet-metal products, primarily for large commercial, corporate and military aircraft. It manufactures more than 30,000 products for integration into a variety of aircraft platforms manufactured by leading original equipment manufacturers and Tier 1 aerospace suppliers. Through its Engineering Services segment, operated by its D3 Technologies subsidiary, the company provides a complete range of design, engineering and program management services, supporting aircraft lifecycles from conceptual design, analysis and certification through production support, fleet support and service-life extensions.

The LMI Aerospace, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4971

This news release includes forward-looking statements related to LMI Aerospace, Inc.'s outlook for 2008, which are based on current management expectations. Such forward-looking statements are subject to various risks and uncertainties, many of which are beyond the control of LMI Aerospace, Inc. Actual results could differ materially from the forward-looking statements as a result of, among other things, the factors detailed from time to time in LMI Aerospace, Inc.'s filings with the Securities and Exchange Commission. Please refer to the Risk Factors contained in the company's Annual Report on Form 10-K for the year ended December 31, 2007, and any risk factor set forth in our other subsequent filings with the Securities and Exchange Commission.


                       LMI Aerospace, Inc.                      
               Condensed Consolidated Balance Sheets            
      (Amounts in thousands, except share and per share data)   
                            (Unaudited)                         
                                                                
                                                                
                                        June 30,   December 31, 
                                         2008         2007      
                                       ----------------------   
 Assets                                                         
 Current assets:                                                
   Cash and cash equivalents           $      28    $      82   
   Trade accounts receivable,                                   
    net of allowance of $295                                    
    at June 30, 2008 and $292                                   
    at December 31, 2007                  33,912       29,588   
   Inventories, net                       49,152       40,940   
   Prepaid expenses and                                         
    other current assets                   2,219        2,135   
   Deferred income taxes                   3,405        3,483   
   Income taxes receivable                   297          630   
                                       ---------    ---------   
 Total current assets                     89,013       76,858   
                                                                
 Property, plant and                                            
  equipment, net                          20,447       19,733   
 Goodwill                                 48,561       48,670   
 Customer intangible                                            
  assets, net                             18,709       19,428   
 Other assets                              1,315        1,429   
                                       ---------    ---------   
 Total assets                          $ 178,045    $ 166,118   
                                       =========    =========   
 Liabilities and shareholders                                   
  equity                                                        
 Current liabilities:                                           
   Accounts payable                    $  10,154    $  10,681   
   Accrued expenses                       11,725        9,997   
   Short-term deferred gain                                     
    on sale of real estate                   233          233   
   Current installments                                         
    of long-term debt                                           
    and capital lease                                           
    obligations                              643          775   
                                       ---------    ---------   
 Total current                                                  
  liabilities                             22,755       21,686   
                                                                
 Long-term deferred                                             
  gain on sale of                                               
  real estate                              3,657        3,773   
 Long-term debt and capital                                     
  lease obligations, less                                       
  current installments                    29,282       29,022   
 Deferred income taxes                     6,810        6,810   
                                       ---------    ---------   
   Total long-term liabilities            39,749       39,605   
                                                                
 Shareholders equity:                                           
  Common stock, $0.02                                           
   par value per share;                                         
   authorized 28,000,000                                        
   shares; issued 11,890,490                                    
   shares and 11,820,057                                        
   shares at June 30, 2008                                      
   and December 31, 2007,                                       
   respectively                              238          236   
  Preferred stock, $0.02                                        
   par value per share;                                         
   authorized 2,000,000                                         
   shares; none issued                                          
   in both periods                            --           --   
  Additional paid-in                                            
   capital                                68,412       67,244   
  Treasury stock, at cost,                                      
   374,888 shares at                                            
   June 30, 2008 and                                            
   385,688 shares at                                            
   December 31, 2007                      (1,779)      (1,830)  
  Retained earnings                       48,670       39,177   
                                       ---------    ---------   
  Total shareholders equity              115,541      104,827   
                                       ---------    ---------   
                                                                
  Total liabilities and                                         
   shareholders equity                 $ 178,045    $ 166,118   
                                       =========    =========   
                                                                
                                                               
See accompanying Notes to Condensed Consolidated Financial      
 Statements.                                                    
                                                                

                                                              
                          LMI Aerospace, Inc.
            Condensed Consolidated Statements of Operations
        (Amounts in thousands, except share and per share data)
                              (Unaudited)

                        Three Months Ended        Six Months Ended
                             June 30                 June 30
                         2008        2007        2008        2007
                    -----------------------------------------------

 Net sales          $    64,904 $    33,935 $   125,321 $    66,112
 Cost of sales           48,233      24,717      93,027      48,623
                    -----------------------------------------------
 Gross profit            16,671       9,218      32,294      17,489

 Selling, general
  and administrative
  expenses                8,328       4,933      16,384       9,943
                    -----------------------------------------------
 Income from
  operations              8,343       4,285      15,910       7,546

 Other income
  (expense):
  Interest income
   (expense), net          (416)        185        (959)        391
  Other, net                 (6)        (30)         (9)        (23)
                    -----------------------------------------------
 Income before
  income taxes            7,921       4,440      14,942       7,914

 Provision for
  income taxes            2,894       1,549       5,439       2,782
                    -----------------------------------------------
 Net income         $     5,027 $     2,891 $     9,503 $     5,132
                    ===============================================

 Amounts per common
  share:
 Net income per
  common share      $      0.45 $      0.26 $      0.85 $      0.46
                    ===============================================

 Net income per
  common share
  assuming dilution $      0.45 $      0.26 $      0.84 $      0.46
                    ===============================================

 Weighted average
  common shares
  outstanding        11,179,613  11,150,899  11,191,977  11,150,899
                    ===============================================

 Weighted average
  dilutive common
  shares
  outstanding        11,296,567  11,267,118  11,310,101  11,271,228
                    ===============================================
 
      See accompanying notes to condensed consolidated financial 
                               statements.
LMI Aerospace, Inc. 
Ed Dickinson, Chief Financial Officer
636.916.2150