Aerospace & Defense News - Defense North America.


New York (AirGuideBusiness - Aerospace & Defense News - Defense North America) Jun 3, 2013

Esterline Esterline Reports Fiscal 2013 Second Quarter and Year-to-Date Financial Results. Esterline Corporation, a leading specialty manufacturer serving global aerospace/defense markets, today reported second fiscal quarter (ended April 26, 2013) net earnings of $35.5 million, or $1.12 per diluted share, on sales of $499.6 million. Net earnings in the second quarter of fiscal 2012 were $45.2 million, or $1.44 per diluted share including a $0.30 per share benefit from a litigation settlement. Sales in the year-ago quarter were $504.8 million. Brad Lawrence, Esterline's Chief Executive Officer, said the company's second quarter results "...reflect stable revenues, steady margins, controlled costs, and good performance in a variety of businesses and programs." Lawrence said he expects a solid second-half performance, despite headwinds in global defense markets and a slower-than-anticipated recovery of the European economy. He said the company "...adjusted full-year guidance to reflect these headwinds, but we're still expecting a strong finish to the year, especially in the fourth quarter," adding that a number of positive trends should be contributing factors. These include "...a steadily growing commercial aerospace market, solid margin performance, and a stable $1.3 billion backlog." He also emphasized the company's continued "...record cash flow from operations should exceed $200 million this fiscal year." The updated full-year guidance puts earnings per share (EPS) in the range of $5.30 to $5.50 on sales of approximately $2.0 billion. Lawrence noted the midpoint of the guidance represents " increase of nearly 9% over last year's adjusted EPS and is realistic, especially in light of prolonged defense program uncertainty." He said defense customers continue to "...slide programs to the right in order to keep their options open. Beechcraft, for example, after implementing rolling furloughs earlier in the year, reduced the build rate for the T-6B Navy trainer by nearly 15%." Esterline makes the integrated glass cockpit for the T-6B. Lawrence said the company's "...unrelenting focus on operational efficiencies" will be another key contributing factor to Esterline's second-half strength. Gross margin, at 36.3% in the second quarter of fiscal 2013, was steady with the fiscal 2012 second quarter level of 36.6%. Selling, general and administrative (SG&A) expenses as a percent of sales remained relatively unchanged at 19.7% in the second quarter of fiscal 2013, compared with 19.6% in the prior year's second quarter. R&D...

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