Posted on May - 11 - 2010
TransDigm Group posts lower second-quarter earnings, but ups guidance
TransDigm Group Inc. (NYSE: TDG) has reported lower second-quarter earnings, but has revised modestly upward its sales and earnings guidance for the full year.
The supplier of aircraft parts said its net income in the quarter that ended April 3 was down 5.6%, to $38 million, or 72 cents a share, from $40.3 million, or 77 cents a share, in the second quarter of fiscal 2009.
Revenue at TransDigm rose 6.7%, to $206.1 million from $193 million.
TransDigm said the decrease in net income primarily was due to an increase in interest expense largely associated with a $425 million note offering issued last October.
W. Nicholas Howley, TransDigm’s chairman and CEO, said the company is “modestly revising full year fiscal 2010 guidance for sales and earnings to reflect the current market outlook.”
“We remain cautious about the pace of recovery in both the worldwide economy and the aerospace markets, but the commercial OEM revenue now appears less likely to decline in the second half of the year.”
Based upon current market conditions and assuming no additional acquisitions, TransDign now anticipates revenue for the year in the range of $804 million to $835 million. It previously put the range at $800 million to $831 million. In fiscal 2009, revenue totaled $762 million.
Also, net income now is anticipated in the range of $150 million to $155 million. Previously, the range was set at $143 million to $153 million. In fiscal 2009, TransDigm earned $163 million.
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