Wesco Aircraft Decreases Revenue GuidanceMonday, May 7, 2012
Aerospace parts distributor and supply chain services provider Wesco Aircraft Holdings Inc. lowered its full-year revenue guidance after finding that its customers had more inventory on hand than the company originally thought.
The Valencia-based company placed its 2012 guidance at between $740 million to $760 million. The guidance had previously been between $760 million and $785 million.
As Wesco signed new contracts, the company found higher inventory than expected at some customers, said Chairman, President, and CEO Randy Snyder.
“Due to this fact, it will take longer to reduce the inventory on-hand and ramp-up sales of products provided by Wesco,” Snyder said. “Because of this, we believe it is appropriate to revise our financial outlook for the full year based on what we are seeing today.”
The guidance change was made as Wesco reported a slight drop in net income for the first quarter ending March 31.
The company had net income of $19.7 million, or $0.21 per diluted share, on revenue of $182.1 million. That is a 10 percent drop from the net income of $21.9 million, or $0.24 per diluted share, on revenue of $176 million.
Mark R. Madler