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Wesco Earnings Down, Halting Guidance

Wesco Aircraft Holdings Inc. reported second-quarter earnings on Thursday that fell short of Wall Street expectations as production issues with commercial and military aircraft cut into organic growth. The Valencia aerospace parts supplier reported net income of $23 million (24 cents a share) for the quarter ended March 31, compared with net income of $24.3 million (25 cents) in the same period a year earlier. Revenue increased 18 percent to $385.6 million. Analysts on average expected net income of 31 cents a share on revenue of $401 million, according to Thomson Financial Network. Chief Executive Dave Castagnola, appointed just a month ago, admitted that Wesco’s financial results have not been satisfactory despite last year’s acquisition of Haas, a West Chester, Pa. supply-chain management firm. “We will deploy more rigorous business and financial planning, accelerate the integration of Haas Group, align our team around common goals and initiatives, and develop one culture that reflects the best of all facets of the company,” Castagnola said in a prepared statement. Castagnola also announced the company would no longer issue guidance for upcoming quarters. “We will revisit this decision once I have had a chance to complete a review of the business and our financial planning processes,” he said. Shares closed up 16 cents, or just more than 1 percent, to $15.25 on the New York Stock Exchange.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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