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

To: Dennis Lefebvre who wrote (389)	5/14/1998 3:05:00 PM
From: Ian A.	Read Replies (2) \| Respond to of 633

First Quarter Results: I would like your comments on the comparison to 4th Quarter 1997, which shows revenues of $90,745,000 and eps at $0.15. MAGELLAN AEROSPACE ANNOUNCES FINANCIAL RESULTS TORONTO, May 14 /CNW/ - Magellan Aerospace Corporation (the ''Corporation'') (MAL) today released financial results for the quarter ending March 31, 1998. The financial results are summarized as follows; Three Months Ended ------------------------------------------------------------------------- (thousands, except March 31, March 31, Percentage per share figures) 1998 1997 Change ------------------------------------------------------------------------- Revenue $ 87,331 $ 48,510 80.1% Operating Income $ 6,254 $ 2,056 204.2% Income for the Period $ 6,126 $ 2,003 205.8% Income per Share $ 0.11 $ 0.05 120.0% ------------------------------------------------------------------------- - Gross margin improved to 17.5% of revenue in the three months ending March 31, 1998 compared to 13.6% of revenue for the corresponding three-month period in fiscal 1997. - Revenue increased to $87.3 million in the quarter ended March 31, 1998, an 80.0% increase from the comparative period in 1997 due to the continued growth of each of our operating divisions and the inclusion of results from Bristol Aerospace Limited (''Bristol'') for the 1998 quarter end. Bristol was acquired July 14, 1997. - On March 23, 1998 the Corporation announced that its subsidiary Orenda Recip Inc. was awarded a Type Certification from Transport Canada for its Orenda OE600 reciprocating aeroengine. On May 8, 1998 the United States Federal Aviation Administration (FAA) granted its Type Certificate for this engine. - On May l3, 1998 the Corporation completed the acquisition of Chicopee Manufacturing Limited (''Chicopee'') of Kitchener, Ontario. Chicopee has annual sales in excess of $45.0 million and operating results will be included in the Corporation's financial statements beginning in the second quarter of fiscal 1998. Magellan Aerospace Corporation, whose shares (MAL) are traded on The Toronto Stock Exchange, manufactures, repairs and overhauls products for the international aerospace industry through eleven 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; and Langley Aerospace of San Diego, California.

To: Dennis Lefebvre who wrote (389)	5/14/1998 4:31:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 633

Den, very good results indeed. I don't think the following DJ article on MAL has been posted. Though it is a bit out-dated (May 4), written before the acquisition of Chicopee, it does provide some info on analyst estimates and expectations, and there's also mention of a big contract coming. MAL - Toronto Analysts are also looking for strong growth at Magellan Aerospace Corp. (T.MAL), partly on the strength of higher revenues following the company's acquisitions of Orenda Aerospace Corp. in May 1996 and its more recent purchase of Bristol Aerospace Ltd. in July 1997. Greg McLeish, analyst with Octagon Capital Canada Corp., said he's impressed with the speed with which Magellan was able to integrate the two acquisitions. He's looking for net of between 9 Canadian cents and 10 Canadian cents a basic share for the first quarter ended March 31, up from 5 Canadian cents a year earlier. However, McLeish added that the company's earnings could come in even higher than that. Analyst David Tyerman of Loewen Ondaatje McCutcheon Ltd. said he's expecting first-quarter net of 12 Canadian cents a fully diluted share for Magellan, compared with 4 Canadian cents a year earlier. The company is expected to report its first-quarter results in mid-May. Further into 1998, Magellan should benefit from a large contract signed by Bristol worth almost C$100 million. The contract, from Boeing Canada Technology Ltd., a unit of Boeing Co. (BA), is for composite panels for wing and tail sections for the next-generation Boeing 737, Tyerman said. Both Tyerman and McLeish said Magellan is looking for acquisitions. McLeish said the company could be looking at one small tuck-under acquisition and a larger one, but Tyerman said he isn't expecting a large acquisition very soon because of inflated valuations in the sector. (MORE) DOW JONES NEWS 05-04-98 02:25 PM