Madskills
Nice pop in price to low 9's on strong earnings and growth.
Attention Business/Financial Editors:
Magellan Aerospace Corporation
TORONTO, Nov. 23 /CNW/ - Magellan Aerospace Corporation (the
''Corporation'') (MAL) today released results for the quarter and nine months
ended September 30, 1998.
The financial results are summarized as follows:
<<
Three Months Ended Nine Months Ended
September 30 September 30
------------------------------------------------------
thousands, except
per share amounts 1998 1997 PERCENTAGE 1998 1997 PERCENTAGE
CHANGE CHANGE
-------------------------------------------------------------------------
Revenue $ 104,417 $ 65,625 59.1% $ 292,436 $ 165,531 76.7%
Net Income $ 8,344 $ 3,882 114.9% $ 21,568 $ 8,011 169.2%
Net Income
Per Share $ 0.14 $ 0.07 100% $ 0.37 $ 0.17 117.6%
-------------------------------------------------------------------------
>>
operating results
The Corporation's revenue increased to $104.4 million in the three months
ended September 30, 1998 as compared to $65.6 million for the same period of
1997. Revenue for the nine months ended September 30, 1998 was $292.4 million
compared to $165.5 million for the same period of the fiscal 1997 year. Net
income for the three months ended September 30, 1998 was $8.3 million or $0.14
per share--a significant improvement from the 1997 third quarter net income of
$3.9 million or $0.07 per share. For the first nine months of fiscal 1998 the
Corporation had net income of $21.6 million or $0.37 per share compared to
$8.0 million or $0.17 per share in the nine months ended September 30, 1997.
new business
During the third quarter of 1998, the Corporation continued to add new
programs to its already diverse revenue base. A strong and growing backlog of
orders exists for aeroengine and aerostructure components as well as for
repair and overhaul and proprietary products. This backlog covers a wide range
of aircraft in the commercial, defence and general aviation markets. The
Corporation continues to win substantial new business in the market due in
part to the recognized technical and manufacturing expertise that the
Corporation has assembled in its various operating units.
During the past month, the Corporation announced new program awards from
The Boeing Co. which totalled $60 million. On October 19, 1998, a contract for
$36 million related to products for the B737 Next Generation (NG) and B747-400
Series aircraft was announced. These products included metal bonded structures
and machined aluminum and titanium components. On November 5, 1998, the
Corporation announced the receipt of a contract with a potential value of $24
million for the supply of metal bonded structures for the Boeing 747-400
Series aircraft.
In addition to these major new program wins, the Corporation continues to
receive awards for numerous other programs and renewal contracts for existing
business at each of its operating units. During the first nine months of the
year, the Corporation received new orders which totalled $335.4 million.
During the balance of the year, the Corporation expects to add additional new
programs.
Magellan Aerospace Corporation, whose shares (MAL) are traded on The
Toronto Stock Exchange, manufactures, repairs and overhauls products for the
international aerospace industry through twelve subsidiaries and divisions:
Bristol Aerospace Limited of Winnipeg and Rockwood, Manitoba and Medicine Hat,
Alberta; Chicopee Manufacturing Limited of Kitchener, Ontario; 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; Langley Aerospace
of San Diego, California; and Ambel Precision Manufacturing Corporation of
Bethel, Connecticut.
%SEDAR: 00002367E
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