Third Quarter Conference Call -- Fiscal 2008
07 / 25 / 2008Highlights
Recent Conference Calls
Components Group Q3 '08
Our Components Group continues its stellar performance. Sales in the quarter of $87 million were up 20% from a year ago. Of the $14.5 million increase, $4.3 million came from the recent acquisitions of Thermal Control Products, Techtron and Prizm. Even without the benefit of the recent acquisitions, sales were up 14%.
Sales of aircraft products, at $29.8 million, were up 20%. The increase was in original equipment, not aftermarket. A major part of the increase was the Guardian program. Guardian is a Northrop Grumman system designed to protect military and commercial aircraft from shoulder-fired missiles. Sales on this program of $2.7 million in the quarter were up $2 million from a year ago. Another big increase was on Raytheon's Multi-Spectral Targeting System. Sales were up $1 million to $1.8 million. On the Lockheed Longbow Radar System we had sales of $800,000, up from nothing a year ago.
The space and defense part of the Components business was up $3.3 million to $15.5 million. The increase was all in the defense segment where sales increased on the Future Combat System, the Abrams Tank, the Bradley Fighting Vehicle and the Stryker Mobile Gun System.
Sales of $11.9 million in the marine market were up 28%. The increase is in equipment used on undersea robots by a broad range of customers. We keep looking for the top in this market, but we don't seem to be there yet. In the most recent quarter, incoming orders were well ahead of sales.
In the medical market, sales were up 7% to $14.7 million. The Respironics revenue was actually down slightly. Quantities were up, but the average selling price has followed the cost reductions introduced through extensive automation. On the other hand, our sales of slip rings for use in CAT Scan machines were up nicely with Philips, Hitachi and others.
Sales of industrial products were up 22% to $15.3 million. This is the area where we see the benefit of the Thermal Control Products and Techtron acquisitions. Also, we're seeing continued growth in slip rings for closed-circuit TV with customers like Pelco, Bosch, and GE Security Systems and we're seeing substantial growth in international sales.
Every quarter, we increase our sales forecast for the year based on the strength of the quarter we're just reporting. Last quarter, we were projecting the year at $330 million. The strength in our aircraft business suggests that the year is more likely to come out at $338 million.
Components Margins
Margins in the quarter were a handsome 17.4%, up from 14.9% a year ago. On a year-to-date basis, the Components Group has run margins of 17.8% and allowing for a slight moderation in the fourth quarter as a function of product mix, we're currently projecting that the year will finish at 17.7%.
Components Group Forecast for '09
Our Components Group continues its stellar performance. Sales in the quarter of $87 million were up 20% from a year ago. Of the $14.5 million increase, $4.3 million came from the recent acquisitions of Thermal Control Products, Techtron and Prizm. Even without the benefit of the recent acquisitions, sales were up 14%.
Sales of aircraft products, at $29.8 million, were up 20%. The increase was in original equipment, not aftermarket. A major part of the increase was the Guardian program. Guardian is a Northrop Grumman system designed to protect military and commercial aircraft from shoulder-fired missiles. Sales on this program of $2.7 million in the quarter were up $2 million from a year ago. Another big increase was on Raytheon's Multi-Spectral Targeting System. Sales were up $1 million to $1.8 million. On the Lockheed Longbow Radar System we had sales of $800,000, up from nothing a year ago.
The space and defense part of the Components business was up $3.3 million to $15.5 million. The increase was all in the defense segment where sales increased on the Future Combat System, the Abrams Tank, the Bradley Fighting Vehicle and the Stryker Mobile Gun System.
Sales of $11.9 million in the marine market were up 28%. The increase is in equipment used on undersea robots by a broad range of customers. We keep looking for the top in this market, but we don't seem to be there yet. In the most recent quarter, incoming orders were well ahead of sales.
In the medical market, sales were up 7% to $14.7 million. The Respironics revenue was actually down slightly. Quantities were up, but the average selling price has followed the cost reductions introduced through extensive automation. On the other hand, our sales of slip rings for use in CAT Scan machines were up nicely with Philips, Hitachi and others.
Sales of industrial products were up 22% to $15.3 million. This is the area where we see the benefit of the Thermal Control Products and Techtron acquisitions. Also, we're seeing continued growth in slip rings for closed-circuit TV with customers like Pelco, Bosch, and GE Security Systems and we're seeing substantial growth in international sales.
Every quarter, we increase our sales forecast for the year based on the strength of the quarter we're just reporting. Last quarter, we were projecting the year at $330 million. The strength in our aircraft business suggests that the year is more likely to come out at $338 million.
Components Margins
Margins in the quarter were a handsome 17.4%, up from 14.9% a year ago. On a year-to-date basis, the Components Group has run margins of 17.8% and allowing for a slight moderation in the fourth quarter as a function of product mix, we're currently projecting that the year will finish at 17.7%.
Components Group Forecast for '09
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