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Magellan Aerospace Corporation Second Quarter Report June 30, 2006
Magellan Aerospace Corporation Second Quarter Report June 30, 2006.
About this update from Magellan Aerospace Corporation
[{"type":"text","content":"\n\n\n\n\nTORONTO, Aug. 14 /CNW/ - Magellan Aerospace Corporation (the\n\"Corporation\" or \"Magellan\") is listed on the Toronto Stock Exchange under the\nsymbol MAL. The Corporation is a diversified supplier of components to the\naerospace industry. Through its network of facilities throughout North America\nand the United Kingdom, Magellan supplies leading aircraft manufacturers,\nairlines and defence agencies throughout the world.\n\nFinancial Results\n-----------------\n\nOn August 14, 2006, the Corporation released its financial results for\nthe second quarter of 2006. The results are summarized as follows:\n\n>\n\nManagement's Discussion and Analysis\n------------------------------------\n\nResults for the second quarter of 2006 are reflective of the difficult\nenvironment in which the Corporation is operating. Improvements in many of its\nunderlying operations are being made, but rising commodity prices and the\nimpact of strengthening Canadian dollar has more than offset these\nefficiencies. Investments and activities designed to improve processes at the\nCorporation's North American casting facilities as well as its manufacturing\nfacilities in the United Kingdom have increased throughput at these\nfacilities, and are expected to improve profitability in the next six to\ntwelve months.\nThe Corporation has undertaken a plan of rationalization and\nmodernization of its facilities in New York City. Over the next six months,\nthe Corporation will pursue the option of selling the surplus real estate. In\norder to prepare the surplus real estate for sale, machinery and equipment\nwill be disposed of for minimal proceeds. Accordingly, a non-cash amortization\ncharge of $5.3 million ($0.04 per share on an after tax basis) has been\nrecorded in the financial statements.\nConditions in the commercial aerospace sector, which has the most\nsignificant influence on the Corporation's operations, continue to improve\nslowly. Many airlines are reporting steadily increasing load factors, and\nseveral airlines in the United States have begun to report operating profits\nafter several years of operating losses, in spite of record high fuel prices.\nAirlines outside of the United States are faring better, and orders for new\naircraft are coming from these areas in significant numbers.\nDemand for aerospace components continues to increas...