TAT Technologies Ltd. (Nasdaq:TATTF) subsidiary Limco-Piedmont Inc. (Nasdaq:LIMC) has reported that it received a $3.5 million contract from the US Air Force for the overhaul of heat exchange units for KC 135 tanker aircraft. The contract calls for deliveries over five years.
The first order under the contract, having a value of approximately $700,000, was received on November 8, 2007. Shipments are expected to begin in January 2008.
Mr. Shaul Menachem, CEO of Limco-Piedmont said: "We are pleased to receive our second order within two months from the US Air Force. These two orders, totaling $8 million, solidify our position as a leading manufacturer and maintenance, repair and overhaul service provider of heat transfer equipment to the military and broaden our capabilities in this market segment."
Limco-Piedmont Inc. provides maintenance, repair and overhaul, or MRO, services and parts supply services to the aerospace industry. The firm listed on Nasdaq on July 23, and has provided a 23.3% return since then.
Limco-Piedmont Inc. also announced revenue for the third quarter of 2007 reached $16.6 million, a 15% increase from $14.5 million reported in the third quarter of 2006, although a drop of 7.7% from the second quarter. Revenue from the MRO segment was 77.1% in the quarter, and parts and services revenue was 22.9%.
Revenues from our two principal lines of business for the three and nine month periods ended September 30, 2007 and 2006 were as follows:
GAAP net income for the third quarter of 2007 was $1.4 million, or $0.12 per basic and diluted share compared with $1.2 million or $0.13 per basic and diluted share in the 2006 second quarter.
Net income on a non-GAAP basis for the third quarter of 2007 was $1.8 million.
Shaul Menachem, Chief Executive Officer, commented: "We believe that the slowing of our growth rate in the third quarter reflects a slowing of airline maintenance requirements, including parts purchases, during the peak air travel summer months. We have begun to see an increase in this work in recent weeks. During the third quarter we continued to expand the scope of our MRO services, which is an integral part of our growth strategy, and look to continued growth in this segment."
"We expect that our MRO services segment will continue to grow in the fourth quarter and that we will report a double digit increase in revenues in the quarter on a year over year basis."
Shares in the firm closed on Monday at $13.56.
Published by Globes [online], Israel business news - www.globes-online.com - on November 13, 2007
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