TORONTO – Magellan Aerospace Corp. (TSX:MAL) says third-quarter earnings soared by more than a third as the Toronto-based supplier of components to the aerospace industry also reported a double-digit boost in revenue.
Magellan says net income in the three months ended Sept. 30 was $13 million or 22 cents per share, up 36.4 per cent from $9.6 million or 16 cents per share in the year-earlier period.
Revenue climbed 11.9 per cent to $202.5 million from $181 million as a result of higher production volumes on both new and legacy commercial aircraft platforms and the appreciation of U.S. dollar and the British pound against the Canadian dollar.
Revenues in Canada increased 6.7 per cent year over year, primarily due to higher revenue from space programs, helped by currency fluctuations and offset in part by reduced revenues from defence programs.
In the U.S., revenues increased by 19.7 per cent due to increased build rates for single-aisle and widebody commercial aircraft programs as well as currency gains.
European revenues increased 10 per cent, primarily due to the strength of the British pound in comparison with the Canadian dollar in the latest period.