Aviall Profit Surges Despite Airline Woes
Aviall Profit Surges Despite Airline Woes
Jason Sandefur
Facing a challenging domestic airline environment, Aviall reported third quarter net sales rose 13% to $333.7 million, while operating income jumped 40%, to $25.5 million. Q3 net earnings increased 42% to $14.3 million. Aviall Services’ net sales growth reflected increases across all geographic regions.
“Despite record-high fuel prices affecting the entire aviation industry and bankruptcies of key domestic airlines, all our business sectors continued to post increases in earnings,” stated CEO Paul Fulchino. “In addition, we are starting to see the benefits of our contract diversification in the military/government sector. Our general aviation and commercial airline markets continue to perform well, highlighted by the performance of our new GE products.”
In January 2005 Aviall paid $160.1 million to GE for exclusive rights to distribute unique parts for GE’s CF6 engines. Aviall predicts the CF6 agreement will generate approximately $5 billion in revenue during its 10-year term, with anticipated average annualized yearly sales of $300 million. The GE transition was successfully completed on July 18, 2005, and, as a result, Aviall’s third quarter net sales include CF6 part sales from that date forward.
Nine-month sales rose 6.2% to $947.3 million, while net earnings soared 27.4% to $42.6 million. Web: aviall.com �2005 FastenerNews.com
There are no comments at the moment, do you want to add one?
Write a comment