TransDigm 4Q profit rises 9.5 pct

posted: 82 DAYS 21 HOURS AGO

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CLEVELAND -Aircraft parts maker TransDigm Group Inc. reported a 9.5 percent rise in its fiscal fourth-quarter profit, citing wider margins, cost cutting, lower interest expenses and a lower effective tax rate.

But it expects an earnings decline as sharp as 29 percent in 2010.

"We go into fiscal 2010 with considerable market uncertainty," said CEO Nicholas Howley. "In differing degrees, most of our market segments are still experiencing headwinds. Though there appears to be some indication of stabilization, it is far from clear at this point."

Quarterly earnings rose to $41.6 million, or 82 cents per share, in the three months ended Sept. 30 compared with $37.9 million, or 75 cents per share, a year ago.

Excluding one-time items, adjusted earnings per share amounted to 89 cents per share.

Analysts polled by Thomson Reuters estimated a profit of 84 cents per share, on average. Analysts typically exclude one-time items.

Revenue rose 4.3 percent to $197.4 million from $189.2 million in the prior-year period. Analysts forecast an average revenue of $192.1 million.

TransDigm said the sales increase was helped in part by contributions from acquisitions, which were partially offset by a 4.6 decline in sales from existing businesses.

"In fiscal 2009, we completed the acquisition of three proprietary aerospace component businesses and ended the fiscal year in sound financial condition with nearly $190 million in cash and almost $200 million of capacity on our revolving credit facility," Howley said.

For all of 2009, TransDigm's net income rose to $162.9 million, or $3.23 per share, compared with $133.1 million, or $2.65 per share, last year. Revenue climbed to $761.6 million from $713.7 million in 2008.

TransDigm expects 2010 net income to decline to a range between $2.28 per share and $2.48 per share. Adjusted earnings per share are expected to be in the range of $2.90 to $3.10 per share compared with $3.42 in fiscal 2009.

Shares of the company fell $1.17, or 2.8 percent, to $40.85 in midday trading.

2009-11-19 12:20:28