Gencorp Inc.‘s aerospace and defense segment, Aerojet, posted revenues of $165.7 million in the second quarter of 2006, a 16 percent increase over revenues from the same period in 2005, the company reported June 29. The increase was due to higher sales of components for Lockheed Martin‘s Atlas 5 program, Gencorp said.

Despite the revenue gains, the segment lost $400,000 in the 2006 second quarter, which ended May 31, down from a profit of $4.2 million in the 2005 second quarter. The 2006 loss was due to the impact of employee retirement benefit plan expense and unusual items, the company said.

As of May 31, Aerojet’s contract backlog was $765 million, compared to $696 million as of Nov. 30.

Overall, Gencorp lost $7.3 million on revenues of $167.4 million in the 2006 second quarter.