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TransDigm swings to Q1 profit, as sales jump 51%

7th Feb 2012, 1:51 pm by Brad Lemaire
TransDigm swings to Q1 profit, as sales jump 51%

Aircraft component maker TransDigm Group (NYSE:TDG) said Tuesday first quarter sales surged by nearly 51 percent, driven by acquisitions and organic growth.

The company, founded in 1993 and with a staff of over 3,800 workers, designs and supplies aircraft parts for commercial and military aircraft in the United States.

For the quarter that ended December 31, net sales rose 50.9 percent to $352.5 million from $233.6 million a year earlier, driven by the acquisitions of McKechnie Aerospace and Harco Laboratories.

Net income surged to $65.1 million, or $1.15 per share, compared to a year-ago net loss of $7.4 million, or 19 cents a share.

Excluding one-time items, like acquisition related and non-cash compensation costs of $11.4 million, the company said adjusted earnings were $1.42 a share.

Analysts polled by Bloomberg were expecting profits of $1.24 a share, on revenues of $341 million.

"We are pleased with our operating results for the first quarter of fiscal year 2012,” chief executive Nicholas Howley said in a statement.

"Organically, our total commercial aerospace revenues were up over 20 percent and defence revenues were up in the mid-single-digit percentage range. This performance again reflects our consistent ability to create intrinsic shareholder value."

Last month, TransDigm agreed to acquire AmSafe Global Holdings for $750 million in cash. The purchase price includes substantial tax benefits to be realized this year and beyond, as the deal is slated to close before second quarter’s end, the company said.

Based on the first-quarter results and the recent acquisition of Harco, the company revised its earnings outlook for the year.

For the full year, TransDigm now foresees adjusted earnings of roughly $5.66 to $6 per share. That is up from its prior guidance range of $5.35 to $5.67 per share.

Analysts predicted earnings of $5.62 per share.

For the year, net sales are expected to be between $1.47 to $1.51 billion, up from its initial guidance of $1.43 to $1.47 billion. Analysts’ estimates call for $1.5 billion in sales.

The company’s shares rose 4.68 percent to $112.45 Tuesday afternoon in New York.

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