TransDigm Q1 Profit Increases; Backs FY15 Outlook - Quick Facts

(RTTNews) - TransDigm Group Inc. (TDG), a global designer, producer and supplier of highly engineered aircraft components, reported that its net income applicable to common stock for the first quarter ended December 27, 2014 rose to $92.17 million or $1.63 per share, from $81.98 million or $1.44 per share, in the comparable quarter a year ago.

The increase in net income was primarily due to growth in net sales described above; a decrease in acquisition-related costs and amortization expense; and lower effective tax rate. The increase in net income was partially offset by higher interest expense as a result of an increase of $1.7 billion in outstanding borrowings primarily to fund the $25.00 per share dividend paid in June 2014.

Adjusted net income for the quarter rose to $101.8 million, or $1.80 per share, from $94.8 million, or $1.66 per share, in the comparable quarter a year ago. Analysts polled by Thomson Reuters expected the company to report earnings of $1.86 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 10.9% to $586.9 million from $529.3 million in the comparable quarter a year ago. Wall Street analysts had a consensus revenue estimate of $597.23 million. The favorable contribution from the acquisitions of Airborne and Elektro-Metall (EME) accounted for approximately 75% of the increase in net sales. Organic net sales growth accounted for the balance of the sales increase.

Assuming no acquisition activity and based upon current market conditions, the Company reaffirmed its fiscal 2015 financial performance guidance.

Net income for the year is still anticipated to be in the range of $429 million to $443 million compared with $307 million in fiscal 2014.

Annual earnings per share are still expected to be in the range of $7.51 to $7.77 per share compared with $3.16 per share in fiscal 2014; and adjusted earnings per share are expected to be in the range of $8.03 to $8.29 per share compared with $7.76 per share in fiscal 2014.

Annual net sales still are anticipated to be in the range of $2.510 billion to $2.550 billion compared with $2.373 billion in fiscal 2014.

Wall Street currently is looking for fiscal year 2015 earnings of $8.32 per share on annual revenues of $2.56 billion.