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\ue000\ue000
UNITED\ue000 STATES
SECURITIES\ue000 AND\ue000 EXCHANGE\ue000 COMMISSION
Washington,\ue000 D.C.\ue000 20549
FORM\ue000 10-K
\ue000
x
ANNUAL\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 fiscal\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008
OR
\ue000
\u00ae
TRANSITION\ue000 REPORT\ue000 PURSUANT\ue000 TO\ue000 SECTION\ue000 13\ue000 OR\ue000 15(d)\ue000 OF\ue000 THE\ue000 SECURITIES\ue000 EXCHANGE\ue000 ACT\ue000 OF\ue000 1934
For\ue000 the\ue000 transition\ue000 period\ue000 from\ue000__________\ue000 to\ue000__________
Commission\ue000 File\ue000 Number\ue000 1-8174
DUCOMMUN\ue000 INCORPORATED
(Exact\ue000 name\ue000 of\ue000 registrant\ue000 as\ue000 specified\ue000 in\ue000 its\ue000 charter)
\ue000
Delaware
\ue000
95-0693330
(State\ue000 or\ue000 other\ue000 jurisdiction\ue000 of
incorporation\ue000 or\ue000 organization)
\ue000
I.R.S.\ue000 Employer
Identification\ue000 No.
\ue000
23301\ue000 Wilmington\ue000 Avenue,\ue000 Carson,\ue000 California
\ue000
90745-6209
(Address\ue000 of\ue000 principal\ue000 executive\ue000 offices)
\ue000
(Zip\ue000 code)
Registrant\u2019s\ue000 telephone\ue000 number,\ue000 including\ue000 area\ue000 code:\ue000 (310)\ue000 513-7280
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(b)\ue000 of\ue000 the\ue000 Act:
\ue000
Title\ue000 of\ue000 each\ue000 class
\ue000\ue000
Name\ue000 of\ue000 each\ue000 exchange\ue000 on\ue000 which\ue000 registered
Common\ue000 Stock,\ue000 $.01\ue000 par\ue000 value
\ue000\ue000
New\ue000 York\ue000 Stock\ue000 Exchange
Securities\ue000 registered\ue000 pursuant\ue000 to\ue000 Section\ue000 12(g)\ue000 of\ue000 the\ue000 Act:
None
(Title\ue000 of\ue000 class)

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 well-known\ue000 seasoned\ue000 issuer,\ue000 as\ue000 defined\ue000 in\ue000 Rule\ue000 405\ue000 of\ue000 the\ue000 Securities\ue000 Act.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 the\ue000 registrant\ue000 is\ue000 not\ue000 required\ue000 to\ue000 file\ue000 reports\ue000 pursuant\ue000 to\ue000 Section\ue000 13\ue000 or\ue000 Section\ue000 15(d)\ue000 of\ue000 the\ue000 Act.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 (1)\ue000 has\ue000 filed\ue000 all\ue000 reports\ue000 required\ue000 to\ue000 be\ue000 filed\ue000 by\ue000 Section\ue000 13\ue000 or\ue000 15(d)\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act

of\ue000 1934\ue000 during\ue000 the\ue000 preceding\ue000 12\ue000 months\ue000 (or\ue000 for\ue000 such\ue000 shorter\ue000 period\ue000 that\ue000 the\ue000 registrant\ue000 was\ue000 required\ue000 to\ue000 file\ue000 such\ue000 reports),\ue000 and\ue000 (2)\ue000 has\ue000 been
subject\ue000 to\ue000 such\ue000 filing\ue000 requirements\ue000 for\ue000 the\ue000 past\ue000 90\ue000 days.\ue000\ue000\ue000\ue000 Yes\ue000 \ue000x\ue000\ue000\ue000\ue000 No\ue000 \ue000\u00ae

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 disclosure\ue000 of\ue000 delinquent\ue000 filers\ue000 pursuant\ue000 to\ue000 Item\ue000 405\ue000 of\ue000 Regulation\ue000 S-K\ue000 (\u00a7229.405\ue000 of\ue000 this\ue000 chapter)\ue000 is\ue000 not\ue000 contained herein,\ue000 and\ue000 will\ue000 not\ue000 be\ue000 contained,\ue000 to\ue000 the\ue000 best\ue000 of\ue000 registrant\u2019s\ue000 knowledge,\ue000 in\ue000 definitive\ue000 proxy\ue000 or\ue000 information\ue000 statements\ue000 incorporated\ue000 by\ue000 reference in\ue000 Part\ue000 III\ue000 of\ue000 this\ue000 Form\ue000 10-K\ue000 or\ue000 any\ue000 amendment\ue000 to\ue000 this\ue000 Form\ue000 10-K.\ue000 \ue000\u00ae

Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 large\ue000 accelerated\ue000 filer,\ue000 an\ue000 accelerated\ue000 filer,\ue000 a\ue000 non-accelerated\ue000 filer\ue000 or\ue000 a\ue000 smaller\ue000 reporting company.\ue000 See\ue000 the\ue000 definitions\ue000 of\ue000 \u201clarge\ue000 accelerated\ue000 filer\u201d,\ue000 \u201caccelerated\ue000 filer\u201d\ue000 and\ue000 \u201csmaller\ue000 reporting\ue000 company\u201d\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange Act.

Large\ue000 accelerated\ue000 filer\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 Accelerated\ue000 filer\ue000 \ue000x\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 Non-accelerated\ue000 filer\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 Smaller\ue000 reporting\ue000 company\ue000 \ue000\u00ae
Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 shell\ue000 company\ue000 (as\ue000 defined\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act).\ue000\ue000\ue000\ue000 Yes\ue000 \ue000\u00ae\ue000\ue000\ue000\ue000 No\ue000 \ue000x

The\ue000 aggregate\ue000 market\ue000 value\ue000 of\ue000 the\ue000 voting\ue000 and\ue000 nonvoting\ue000 common\ue000 equity\ue000 held\ue000 by\ue000 nonaffiliates\ue000 compared\ue000 by\ue000 reference\ue000 to\ue000 the\ue000 price\ue000 of\ue000 which\ue000 the common\ue000 equity\ue000 was\ue000 last\ue000 sold,\ue000 or\ue000 the\ue000 average\ue000 bid\ue000 and\ue000 asked\ue000 price\ue000 of\ue000 such\ue000 common\ue000 equity,\ue000 as\ue000 of\ue000 the\ue000 last\ue000 business\ue000 day\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 most recently\ue000 completed\ue000 second\ue000 fiscal\ue000 quarter\ue000 ended\ue000 June\ue000 28,\ue000 2008\ue000 was\ue000 approximately\ue000 $244\ue000 million.

The\ue000 number\ue000 of\ue000 shares\ue000 of\ue000 common\ue000 stock\ue000 outstanding\ue000 on\ue000 January\ue000 31,\ue000 2009\ue000 was\ue000 10,511,586.
DOCUMENTS\ue000 INCORPORATED\ue000 BY\ue000 REFERENCE
The\ue000 following\ue000 documents\ue000 are\ue000 incorporated\ue000 by\ue000 reference:
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(a)\ue000 Proxy\ue000 Statement\ue000 for\ue000 the\ue000 2009\ue000 Annual\ue000 Meeting\ue000 of\ue000 Shareholders\ue000 (the\ue000 \u201c2009\ue000 Proxy\ue000 Statement\u201d),\ue000 incorporated\ue000 partially\ue000 in\ue000 Part\ue000 III\ue000 hereof.
FORWARD-LOOKING\ue000 STATEMENTS\ue000 AND\ue000 RISK\ue000 FACTORS

Certain\ue000 statements\ue000 in\ue000 the\ue000 Form\ue000 10-K\ue000 and\ue000 documents\ue000 incorporated\ue000 by\ue000 reference\ue000 contain\ue000 forward-looking\ue000 statements\ue000 within\ue000 the\ue000 meaning\ue000 of Section\ue000 27A\ue000 of\ue000 the\ue000 Securities\ue000 Act\ue000 of\ue000 1933,\ue000 as\ue000 amended,\ue000 and\ue000 Section\ue000 21E\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act\ue000 of\ue000 1934,\ue000 as\ue000 amended.\ue000 Any\ue000 such forward-looking\ue000 statements\ue000 involve\ue000 risks\ue000 and\ue000 uncertainties.\ue000 The\ue000 Company\u2019s\ue000 future\ue000 financial\ue000 results\ue000 could\ue000 differ\ue000 materially\ue000 from\ue000 those anticipated\ue000 due\ue000 to\ue000 the\ue000 Company\u2019s\ue000 dependence\ue000 on\ue000 conditions\ue000 in\ue000 the\ue000 airline\ue000 industry,\ue000 the\ue000 level\ue000 of\ue000 new\ue000 commercial\ue000 aircraft\ue000 orders,\ue000 production rates\ue000 for\ue000 Boeing\ue000 commercial\ue000 aircraft,\ue000 the\ue000 C-17\ue000 aircraft\ue000 and\ue000 Apache\ue000 helicopter\ue000 rotor\ue000 blade\ue000 programs,\ue000 the\ue000 level\ue000 of\ue000 defense\ue000 spending,\ue000 competitive pricing\ue000 pressures,\ue000 manufacturing\ue000 inefficiencies,\ue000 start-up\ue000 costs\ue000 and\ue000 possible\ue000 overruns\ue000 on\ue000 new\ue000 contracts,\ue000 technology\ue000 and\ue000 product\ue000 development risks\ue000 and\ue000 uncertainties,\ue000 product\ue000 performance,\ue000 risks\ue000 associated\ue000 with\ue000 acquisitions\ue000 and\ue000 dispositions\ue000 of\ue000 businesses\ue000 by\ue000 the\ue000 Company,\ue000 increasing consolidation\ue000 of\ue000 customers\ue000 and\ue000 suppliers\ue000 in\ue000 the\ue000 aerospace\ue000 industry,\ue000 possible\ue000 goodwill\ue000 impairment,\ue000 availability\ue000 of\ue000 raw\ue000 materials\ue000 and components\ue000 from\ue000 suppliers,\ue000 credit\ue000 market\ue000 conditions\ue000 and\ue000 other\ue000 factors\ue000 beyond\ue000 the\ue000 Company\u2019s\ue000 control.\ue000 See\ue000 the\ue000 \u201cManagement\u2019s\ue000 Discussion and\ue000 Analysis\ue000 of\ue000 Financial\ue000 Condition\ue000 and\ue000 Results\ue000 of\ue000 Operations,\u201d\ue000 \u201cRisk\ue000 Factors,\u201d\ue000 and\ue000 other\ue000 matters\ue000 discussed\ue000 in\ue000 this\ue000 Form\ue000 10-K.

\ue000\ue000\ue000
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PART\ue000 I
\ue000
ITEM\ue000 1.
BUSINESS
GENERAL

Ducommun\ue000 Incorporated\ue000 (\u201cDucommun\u201d\ue000 or\ue000 the\ue000 \u201cCompany\u201d),\ue000 is\ue000 the\ue000 successor\ue000 to\ue000 a\ue000 business\ue000 founded\ue000 in\ue000 California\ue000 in\ue000 1849,\ue000 first incorporated\ue000 in\ue000 California\ue000 in\ue000 1907,\ue000 and\ue000 reincorporated\ue000 in\ue000 Delaware\ue000 in\ue000 1970.\ue000 Ducommun,\ue000 through\ue000 its\ue000 subsidiaries,\ue000 designs,\ue000 engineers\ue000 and manufactures\ue000 aerostructure\ue000 and\ue000 electromechanical\ue000 components\ue000 and\ue000 subassemblies,\ue000 and\ue000 provides\ue000 engineering,\ue000 technical\ue000 and\ue000 program management\ue000 services\ue000 principally\ue000 for\ue000 the\ue000 aerospace\ue000 industry.\ue000 These\ue000 components,\ue000 assemblies\ue000 and\ue000 services\ue000 are\ue000 provided\ue000 principally\ue000 for\ue000 domestic and\ue000 foreign\ue000 commercial\ue000 and\ue000 military\ue000 aircraft,\ue000 helicopter,\ue000 missile\ue000 and\ue000 related\ue000 programs\ue000 as\ue000 well\ue000 as\ue000 space\ue000 programs.

Domestic\ue000 commercial\ue000 aircraft\ue000 programs\ue000 include\ue000 the\ue000 Boeing\ue000 737NG,\ue000 747,\ue000 767,\ue000 777\ue000 and\ue000 787.\ue000 Foreign\ue000 commercial\ue000 aircraft\ue000 programs\ue000 include\ue000 the Airbus\ue000 Industrie\ue000 A330\ue000 and\ue000 A340\ue000 aircraft,\ue000 Bombardier\ue000 business\ue000 and\ue000 regional\ue000 jets,\ue000 and\ue000 the\ue000 Embraer\ue000 145\ue000 and\ue000 170/190.\ue000 Major\ue000 military\ue000 programs include\ue000 the\ue000 Boeing\ue000 C-17,\ue000 F-15\ue000 and\ue000 F-18\ue000 and\ue000 Lockheed\ue000 Martin\ue000 F-16\ue000 and\ue000 F-22\ue000 aircraft,\ue000 and\ue000 various\ue000 aircraft\ue000 and\ue000 shipboard\ue000 electronics\ue000 upgrade programs.\ue000 Commercial\ue000 and\ue000 military\ue000 helicopter\ue000 programs\ue000 include\ue000 helicopters\ue000 manufactured\ue000 by\ue000 Boeing\ue000 (principally\ue000 the\ue000 Apache\ue000 and\ue000 Chinook helicopters),\ue000 Sikorsky,\ue000 Bell,\ue000 Augusta\ue000 and\ue000 Carson.\ue000 The\ue000 Company\ue000 also\ue000 supports\ue000 various\ue000 unmanned\ue000 space\ue000 launch\ue000 vehicle\ue000 and\ue000 satellite\ue000 programs.

On\ue000 December\ue000 23,\ue000 2008,\ue000 the\ue000 Company\ue000 acquired\ue000 DynaBil\ue000 Industries,\ue000 Inc.\ue000 (\u201cDynaBil\u201d),\ue000 a\ue000 privately-owned\ue000 company\ue000 based\ue000 in\ue000 Coxsackie,\ue000 New York\ue000 for\ue000 $45,986,000\ue000 (net\ue000 of\ue000 cash\ue000 acquired\ue000 and\ue000 excluding\ue000 acquisition\ue000 costs).\ue000 The\ue000 purchase\ue000 price\ue000 for\ue000 DynaBil\ue000 remains\ue000 subject\ue000 to\ue000 adjustment based\ue000 on\ue000 a\ue000 closing\ue000 balance\ue000 sheet.\ue000 DynaBil\ue000 is\ue000 a\ue000 leading\ue000 provider\ue000 of\ue000 titanium\ue000 and\ue000 aluminum\ue000 structural\ue000 components\ue000 and\ue000 assemblies\ue000 for commercial\ue000 and\ue000 military\ue000 aerospace\ue000 applications.\ue000 The\ue000 acquisition\ue000 was\ue000 funded\ue000 from\ue000 internally\ue000 generated\ue000 cash,\ue000 notes\ue000 to\ue000 the\ue000 sellers,\ue000 and borrowings\ue000 of\ue000 approximately\ue000 $10,500,000\ue000 under\ue000 the\ue000 Company\u2019s\ue000 credit\ue000 agreement.

On\ue000 January\ue000 6,\ue000 2006,\ue000 the\ue000 Company\ue000 acquired\ue000 Miltec\ue000 Corporation\ue000 (\u201cMiltec\u201d),\ue000 a\ue000 privately-owned\ue000 company\ue000 based\ue000 in\ue000 Huntsville,\ue000 Alabama\ue000 for $46,811,000\ue000 (net\ue000 of\ue000 cash,\ue000 including\ue000 assumed\ue000 indebtedness\ue000 and\ue000 excluding\ue000 acquisition\ue000 costs).\ue000 Miltec\ue000 provides\ue000 engineering,\ue000 technical\ue000 and program\ue000 management\ue000 services\ue000 (including\ue000 design,\ue000 development,\ue000 integration\ue000 and\ue000 test\ue000 of\ue000 prototype\ue000 products)\ue000 principally\ue000 for\ue000 aerospace\ue000 and military\ue000 markets.\ue000 The\ue000 acquisition\ue000 was\ue000 funded\ue000 from\ue000 internally\ue000 generated\ue000 cash,\ue000 notes\ue000 to\ue000 the\ue000 sellers,\ue000 and\ue000 borrowings\ue000 of\ue000 approximately\ue000 $24,000,000 under\ue000 the\ue000 Company\u2019s\ue000 credit\ue000 agreement.\ue000 On\ue000 May\ue000 10,\ue000 2006,\ue000 the\ue000 Company\ue000 acquired\ue000 WiseWave\ue000 Technologies,\ue000 Inc.\ue000 (\u201cWiseWave\u201d),\ue000 a\ue000 privately- owned\ue000 company\ue000 based\ue000 in\ue000 Torrance,\ue000 California\ue000 for\ue000 $6,827,000\ue000 (net\ue000 of\ue000 cash,\ue000 including\ue000 assumed\ue000 indebtedness\ue000 and\ue000 excluding\ue000 acquisition\ue000 costs). WiseWave\ue000 manufactures\ue000 microwave\ue000 and\ue000 millimeterwave\ue000 products\ue000 for\ue000 both\ue000 aerospace\ue000 and\ue000 non-aerospace\ue000 applications.\ue000 The\ue000 acquisition\ue000 was funded\ue000 from\ue000 notes\ue000 to\ue000 the\ue000 sellers,\ue000 and\ue000 borrowings\ue000 of\ue000 approximately\ue000 $5,100,000\ue000 under\ue000 the\ue000 Company\u2019s\ue000 credit\ue000 agreement.\ue000 On\ue000 September\ue000 1,\ue000 2006, the\ue000 Company\ue000 acquired\ue000 CMP\ue000 Display\ue000 Systems,\ue000 Inc.\ue000 (\u201cCMP\u201d),\ue000 a\ue000 privately-owned\ue000 company\ue000 based\ue000 in\ue000 Newbury\ue000 Park,\ue000 California\ue000 for\ue000 $13,804,000 (net\ue000 of\ue000 cash\ue000 acquired\ue000 and\ue000 excluding\ue000 acquisition\ue000 costs).

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