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

To: Steven Ivanyi who wrote (435)	8/17/1998 9:39:00 AM
From: Ian A.	Respond to of 633

MAL up .50 in early trading on 2nd quarter earnings report and continued growth. MAGELLAN AEROSPACE CORPORATION TORONTO, Aug. 17 /CNW/ - Magellan Aerospace Corporation (the ''Corporation'') (MAL) today released results for the quarter and six months ended June 30, 1998. The financial results are summarized as follows: << Three Months Ended Six Months Ended June 30 June 30 -------------------------------------------------------- thousands, except per PERCENTAGE PERCENTAGE share amounts 1998 1997 CHANGE 1998 1997 CHANGE ------------------------------------------------------------------------- Revenue $100,688 $ 51,396 +95.9% $188,019 $ 99,906 +88.2% Net Income $ 7,098 $ 2,126 +233.9% $ 13,224 $ 4,129 +220.3% Net Income Per Share $ 0.12 $ 0.05 +140.0% $ 0.23 $ 0.10 +130.0% ------------------------------------------------------------------------- >> operating results The Corporation's revenue increased to $100.7 million in the three months ended June 30, 1998 as compared to $51.4 million for the same period of 1997. Revenue for the six months ended June 30, 1998 was $188.0 million compared to $99.9 million for the same period in the fiscal 1997 year. Net income for the three months ended June 30, 1998 was $7.1 million or $0.12 per share -- a significant improvement from the 1997 second quarter net income of $2.1 million or $0.05 per share. For the first six months of fiscal 1998 the Corporation had net income of $13.2 million or $0.23 per share compared to $4.1 million or $0.10 per share in the six months ended June 30, 1997. The increased revenue and profits were a result of the strong growth of the aerospace industry, cost efficiencies realized and the inclusion of new acquisitions. Gross profit increased to 17.8% in the first six months compared to 13.6% in the corresponding period of the previous year. Results for Bristol Aerospace Limited were included starting in the third quarter of fiscal 1997 and Chicopee Manufacturing Limited and AMBEL Precision Manufacturing Corporation were included beginning in the second quarter of the 1998 fiscal year. acquisitions Recently the Corporation completed the acquisition of two new operations. The acquisitions were Chicopee Manufacturing Limited of Kitchener, Ontario, a manufacturer of precision machined medium and large structural aerospace components, and AMBEL Precision Manufacturing Corporation of Bethel, Connecticut, a high quality supplier of jet engine components and assemblies to the aeroengine manufacturers. In addition to contributing to future revenue and net income, each of these new facilities brings new skills and operational synergies to the benefit of other operations of the Corporation. business outlook The outlook for the aircraft parts industry continues to be very positive with strong demand for new aircraft. The prime aircraft and aeroengine companies continue to outsource manufacturing activities to high quality parts manufacturers to gain desired cost and delivery efficiencies. The Corporation has assembled a strong group of well respected manufacturing operations that are being recognized and awarded new long term programs for both aircraft structures and jet engine components. During the first six months the Corporation received new orders which totaled $212.2 million. The prospects for further expansion of the Corporation's business base are excellent. The addition of Chicopee and AMBEL during the latest quarter broadens the Corporation's business base in both the structures and engine component sections of the aircraft industry. The Corporation has developed a solid diversification within the aerospace parts manufacturing business with a significant product mix of structural and engine products that are used in both jet and turboprop commuter airplanes. In addition, the Corporation has a solid base of defence products and repair services and has developed a number of proprietary products that will provide significant revenues for the years to come. During the balance of fiscal 1998 and beyond, the Corporation, based on its substantial backlog and current opportunities, expects that it will continue to grow in both revenue and profits. The growth challenges currently being experienced by the aircraft manufacturers will present further opportunities for the Corporation to utilize its available capacity and grow its revenue base through receipt of additional outsourced work. 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.