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Gold/Mining/Energy : Magellan Aerospace Corp (MAL) New Listing -- Ignore unavailable to you. Want to Upgrade?

To: panda-man who wrote (624)	8/15/2000 7:26:57 PM
From: worldtraveller	Read Replies (1) \| Respond to of 633

The gem that keeps getting overlooked: Magellan Aerospace logs profit, revenue gains TORONTO, Aug 15 (Reuters) - Airplane parts and defense systems manufacturer Magellan Aerospace (MAL.TO) on Tuesday posted stronger second-quarter earnings over last year's, attributing the gains to better revenues and improved gross margins. Magellan said its revenue for the quarter rose 5.6 per cent to $162.6 million ($109 million) from the $154 million logged in the 1999 period. Net income rose 30.3 per cent to $9.1 million or 14¢ a share from $7 million or 11¢ in the prior-year period. The Toronto-based company's gross margins climbed to 18.4 per cent in the second quarter of 2000 from 16.9 per cent in the second three months of last year. Administrative and general expenses fell to 6.3 per cent of revenue from 6.7 per cent in the prior-year period. "All of the leading manufacturers of commercial aircraft are experiencing strong sales performance year-to-date in 2000, and each is expected to increase production rates over the next two years from current levels," Magellan said. It said it has won extensions of existing contracts and has begun to get orders for new work from both Boeing (BA.N) and Airbus Industrie. The company said it will focus on acquisitions which fit with its core businesses and that the strength in its balance sheet will allow it to pursue further acquisitions and growth, adding it believed its strong financial performance will ultimately be reflected in the performance of its share price. Magellan shares closed at $5 on Monday, just off their 52-week low of $4.75 and well south of the year peak of $9.95.