5/24/2016
NEWS BRIEFS
KLX Posts Solid Gains in Aerospace Revenue
KLX reported consolidated revenues declined 14.7% to $368.2 million in the opening quarter of 2016. Q1 operating earnings were $29.1 million, net earnings on a GAAP basis were $6.2 million, and EBITDA was $50.5 million. Adjusted net earnings and adjusted net earnings per diluted share were $21.9 million and $0.42 respectively.
Aerospace Solutions Group segment (“ASG”) revenues – primarily from fasteners – rose 0.2% to $331.1 million.
“Revenues from commercial aerospace manufacturing and aftermarket customers were flat, but revenues from military and business jet customers declined 24%, resulting in a 4.9% year over year decline. ASG revenues increased 8.2% sequentially compared to the immediately preceding quarter.
ASG operating earnings were down 1.5%, and operating margin was 18.1 percent reflecting a 60 basis point improvement as compared to the same period last year.
“Our ASG business continues to perform well,” stated CEO Amin Khoury. “In fact, ASG revenues increased 8.2 percent on a sequential quarterly basis. However, comparisons with the prior year period are challenged by the record first half performance of 2015.
“Year over year comparisons reflect essentially flat revenues from our commercial aerospace manufacturing and aftermarket customers but an approximate 24 percent decline in revenues from our military and business jet customers.”
On May 17, KLX acquired Herndon Aerospace & Defense, LLC, an aftermarket aerospace supply chain management and consumables hardware distributor servicing principally aftermarket military depots, as well as the commercial aerospace aftermarket.
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