Magellan just posted its results for the Year 97 and 4th quarter, I welcome any comments.
Subject: MAGELLAN AEROSPACE ANNOUNCES RECORD OPERATING RESULTS
To: "Portfolio Email User" <portfolio@newswire.ca>
Attention Business/Financial Editors:
MAGELLAN AEROSPACE ANNOUNCES RECORD OPERATING RESULTS
TORONTO, March 9 /CNW/ - Magellan Aerospace Corporation (the
''Corporation'') (MAL) today released results for the quarter and year ending
December 31, 1997.
The financial results are summarized as follows:
<<
-------------------------------------------------------
Three Months Ended Year Ended
------------------------------------------------------------------------
(000's) except December 31, December 31, December 31, December 31,
per share figures) 1997 1996 1997 1996
------------------------------------------------------------------------
Revenue $ 90,745 $ 48,238 $ 256,276 $ 136,657
Operating
Income (Loss) $ 7,679 $ 852 $ 16,064 $ (810)
Non Recurring
Gains - $ 19,057 (1) - $ 20,209 (2)
Income $ 7,525 $ 19,679 (1) $ 15,536 $ 19,024 (2)
Income per
Share $ 0.15 $ 0.50 $ 0.32 $ 0.48
------------------------------------------------------------------------
>>
Notes:
------
(1) Income for the quarter ended December 31, 1996 included a non
recurring gain of $19,057,000 relating to the repurchase of
certain indebtedness.
(2) Income for the year ended December 31, 1996 included non
recurring gains which totalled $20,209,000 relating to the
repurchase of certain indebtedness and of a minority interest.
- Operating income for fiscal 1997 improved significantly to $16.1
million for the year ended 1997 compared to a loss of $0.8 million in
the similar period in 1996. During the three months ended
December 31, 1997 operating income of $7.8 million was recorded
compared to operating income of $0.9 million earned in the same
quarter of 1996. Gross profit for fiscal 1997 rose to 16.5% of sales
compared to 10.6% of sales for the 1996 year. Administrative and
general expenses declined to 7.8% of sales in 1997 from 9.0% of sales
in the preceding year. These improvements to operating income were
achieved primarily as a result of the implementation of cost saving
initiatives and efficiency improvements.
- The revenue increase of 87.5% from $136.7 million in 1996 to $256.3
million in 1997 was attributable to the growth in the Corporation's
business and to the inclusion of results of Orenda Aerospace
Corporation (''Orenda''), Middleton Aerospace Corporation
(''Middleton'') and Bristol Aerospace Limited (''Bristol''). For 1996
Orenda's and Middleton's operations were included for the period
subsequent to the acquisition by the Corporation on May 7, 1996.
Bristol was acquired on July 14, 1997 and accordingly operations were
included subsequent to that date.
- During 1997 orders totaling $403.0 million were received by Magellan
operating units, including a $98.9 million award to Bristol from
Boeing Canada Technology Limited that was previously announced on
October 7, 1997.
- In 1997 the Corporation invested $7.8 million on the development of
its reciprocating engine and the establishment of a new production
facility in Debert, Nova Scotia for the manufacture and installation
of these engines. The Corporation has completed the development and
testing of the new engine and expects to enter full production during
1998.
- During the year ended December 31, 1997 the Corporation continued to
expand its capabilities through the development of two new facilities
consisting of a new shaft cell for the manufacture of aeroengine
components at Middleton and a new composite aerostructure facility at
Bristol.
Magellan Aerospace Corporation, whose shares (MAL) are traded on The
Toronto Stock Exchange, manufactures, repairs and overhauls products for the
international aerospace industry through ten subsidiaries and divisions:
Bristol Aerospace Limited of Winnipeg and Rockwood, Manitoba and Medicine Hat,
Alberta; Fleet Industries Ltd. of Fort Erie, Ontario; Orenda Aerospace
Corporation of Mississauga, Ontario; Orenda Recip Inc. of Truro, Nova Scotia;
A-R Technologies of Richmond, British Columbia; Aeronca, Inc. of Middletown,
Ohio; Middleton Aerospace Corporation of Middleton, Massachusetts; and Langley
Division of San Diego, California. |
