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22 Oct 15. Safran Q3 revenue rises, reaffirms targets.
French aerospace group Safran reported higher-than-expected third-quarter revenue on Thursday and reaffirmed its 2015 targets, saying airlines were taking advantage of low oil prices to carry out engine overhauls.
Quarterly revenue rose 4.6 percent on a like-for-like basis to 4.141bn euros ($4.69bn), buoyed by civil aftermarket revenue that grew 18.5 percent in dollar terms, it said in a statement.
Analysts were on average expecting quarterly revenue of 4.04bn euros.
For the first nine months of the year, the widely watched civil aftermarket revenue figure rose 24.4 percent, driven mainly by overhauls of second-generation CFM56 and GE90 engines.
Safran said the development of the successor to the CFM56, the LEAP family of engines, was on track but that it was looking at a new schedule and extra development work for its Silvercrest engine for business jets.
The delays will not affect operating income and cashflow targets for 2015, it said. ($1 = 0.8821 euros) (Source: Reuters)
21 Oct 15. Precision Castparts Second Quarter Fiscal 2016 Earnings. Precision Castparts Corp. (PCP) reported its results for the second quarter of fiscal 2016:
Large commercial aerospace demand remained solid during the second quarter, increasing approximately 2 percent over the same quarter last year. Regional/business jet sales were down modestly and military demand was down approximately 15 percent. Power markets remained the largest negative driver in the second quarter, with a 26 percent decline overall, reflecting a low-single digit IGT decline, but an approximately 50 percent decline in the non-IGT oil & gas and pipe markets. Contractual pass-through and metal pricing had an approximately $20m negative impact to sales.
Operating income fell 22 percent to $548m, due to the negative impact of lower sales and pricing pressures in the oil & gas market, coupled with continued fastener destocking and operational challenges in the Airframe Products segment. The company also incurred approximately $6m of expenses associated with the pending transaction with Berkshire Hathaway Inc.
Sales grew by 1 percent with approximately $3m of lower contractual pass-through pricing year-over-year. Commercial aerospace sales increased 6 percent year-over-year and regional/business jet sales increased by approximately 15 percent, driven by solid demand on current aerospace platforms. Military shipments were lower by approximately 12 percent, reflecting timing of customer demand. IGT sales were down slightly with solid OEM demand offset by softness in aftermarket sales.
• The segment’s operating income increased 3 percent, and operating margins expanded by 60 basis points year over year from 36.0 percent to 36.6 percent, resulting from effective leverage of higher volumes.
• Sales declined by 16 percent, including the negative impact of approximately $16m from metal prices and contractual pass-through pricing. Commercial aerospace sales grew by 4 percent and regional/business jet sales were higher, both due to solid demand. Military sales declined by approximately 15 percent due to similar dynamics as Investment Cast Products. Power sales decreased by nearly 50 percent, primarily due to the lower oil & gas and pipe demand, coupled with lower general industrial sales as a second-derivative impact of lower oil prices and weak overall demand through distribution channels.
• Operating income dropped by 36 percent, while operating margins fell 600 basis points to 18.7 percent as a result of negative volume leverage, weaker pricing in oil & gas markets and scheduled maintenance outages and the extended outage on a critical asset in the United Ki