Esterline Technologies (NYSE: - ), a specialty manufacturer for a tellurian aerospace and invulnerability markets, came out with fourth-quarter numbers that were subsequent Wall Street expectations. Let's take a closer, Foolish demeanour during what's going on with Esterline.
Figuring it out
The association saw a income arise by a plain 17% to $502.4 million. Esterline's net profit, on a other hand, declined by a towering 67% to usually $19.4 million especially since aloft sales were equivalent by acquisition-related costs, joined with aloft seductiveness expenses.
In July, Esterline announced a execution of a merger of France-based Souriau Group for around $705 million. According to management, Souriau, a retailer of connector products for severe environments, would raise a company's business in France and in sectors including defense, aerospace, energy generation, rail, and industrial equipment.
Moving forward with a few speed bumps
Esterline's R&D losses have risen by 73% from a prior year's quarter, to $30.6 million. However, a R&D efforts seem to have paid off as a association has cumulative critical positions for countless troops aircrafts, such as Boeing's (NYSE: - ) P-8, Lockheed Martin's (NYSE: - ) F-35, and Airbus' A400M.
On a blurb aircraft front, Esterline says aircraft prolongation is witnessing an adult cycle during business including Airbus, Boeing, Bombardier, and Embraer (NYSE: - ) on a behind of loads of direct for new platforms as good as bequest aircrafts.
However, along with a good news, a association faces a few pain points in a year ahead. One of them relates to Esterline's multiyear agreement to ascent cockpits of around half of a Saudi swift of C-130 aircraft. A check being caused by a stream operational requirement of these aircraft in a shred will check a deal, value $25 million, until during slightest a second half of 2012.
The Foolish bottom line
While direct from a blurb aerospace attention is witnessing a cyclical uptrend, Esterline could face a downtrend in a defense-related business in a subsequent few years due to invulnerability bill cuts in a U.S. However, on a splendid side, invulnerability spending would expected boost in countries such as India, Brazil, Saudi Arabia, and Australia, and a association is well-persified with a blurb aviation segment.
Overall, we consider Esterline is a really intriguing aerospace and invulnerability collect for a future, though a analysts have comparison a opposite batch that they trust is staid for extensive expansion in 2012. Find out that association in a new giveaway report: "." Thousands have already requested entrance and it'll usually be accessible for a singular time. Simply -- .
Keki Fatakia does not reason shares in any of a companies mentioned in this article. have endorsed shopping shares of Embraer. Try any of a Foolish newsletter services . We Fools might not all reason a same opinions, though we all trust that makes us improved investors. The Motley Fool has a .
News referensi http://news.yahoo.com/esterline-revenues-off-earnings-stutter-165918356.html
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