Heico 1st-quarter profit, sales climb amid strengthening demand

Thursday, February 25, 2010

Heico reports higher 1Q profit, sales

HOLLYWOOD, Fla. — Aerospace and defense company Heico Corp. said its fiscal first-quarter profit and sales improved, boosted by “some strengthening in demand” for certain satellite, defense and medical equipment products.

For the three months ended Jan. 31, the company reported a profit of $11.8 million, or 44 cents per share, up rose 4 percent from $11.3 million, or 42 cents per share, in the same period a year earlier.

Revenue rose 4 percent to $135.5 million from $130.4 million, the company said Wednesday.

Analysts, on average, were expecting a profit of 40 cents per share on sales of $135.8 million, according to a poll by Thomson Reuters.

“As we look to the balance of fiscal 2010, we expect continued softness during the first half of calendar 2010 in our commercial aviation markets, which represent approximately 68 (percent) of our annual sales,” said Laurans A. Mendelson, chairman and CEO, in a statement.

“While the consensus opinion within the industry continues to expect a recovery within the airline industry in the later half of 2010, the strength and exact timing of such a recovery is uncertain at this time,” Mendelson added.

The company forecast fiscal 2010 earnings of $1.78 to $1.82 per share on sales of $575 million to $585 million.

Analysts are expecting earnings of $1.78 per share on sales of $577.6 million.

Shares rose $2.23, or 4.9 percent to close at $47.74 Thursday.

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