AviTrader_Monthly_MRO_e-Magazine_2017-06

Finance News
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on its own path of strong growth and high profitability. The contemplated
acquisition of Zodiac Aerospace by Safran would create the
world’s third-largest player in aerospace and the world’s secondlargest
player in aircraft equipment
IAI posts first-quarter 2017 net income of US$46m
Israel Aerospace Industries (IAI), Israel’s largest national military and
civilian security defense company, issued its consolidated financial
statements for the three months ended March 31, 2017. Operating
income in the first-quarter 2017 totaled US$44m (5.3% of sales)
compared with US$11m (1.3% of sales) in the first quarter of 2016.
EBITDA in the first-quarter 2017 amounted to US$72m compared with
US$38m in the first quarter of 2016. Net financial expenses amounted
to approximately US$7m, similarly to the corresponding quarter of
2016. Net income in the first-quarter 2017 amounted to US$46m
(5.5% of sales) compared with net income of US$11m (1.3% of sales)
in the first quarter of 2016. The order backlog at the end of the firstquarter
2017 totaled US$9.3bn compared with US$9bn at the end of
2016. 71% of the order backlog is held for sale to foreign customers
with wide geographical dispersion. The order backlog is comprised of
a wide variety of products and secures two-and-a-half years of operation.
With the addition of the mega engagements signed and reported
after the date of preparation of the financial statements, the order
backlog currently amounts to US$11bn.
SIA Engineering Company and GE Aviation to form
Engine Overhaul Joint Venture
SIA Engineering Company and GE Aviation have agreed to establish
a new engine overhaul joint venture based in Singapore.
The joint venture will provide a full range of engine maintenance,
repair and overhaul (MRO) services for the GE90 and GE9X engines.
The GE90 engine exclusively powers the Boeing 777-300ER
and 777-200LR, and the GE9X engine is the sole engine selection
for the Boeing 777X aircraft. The formation of the joint venture,
where GE will have a 51% equity stake and SIAEC holding the remaining
49%, is subject to finalization of the definitive agreements
and receipt of required regulatory approvals. This partnership,
which is expected to have benefits to and beyond the SIA Group,
is made possible by Singapore Airlines’ announcement in February
2017 of a letter of intent for 39 Boeing widebody aircraft valued at
US$13.8bn, which includes 20 777-9s powered by GE9X engines.
SIA is also a major operator of GE90-powered 777-300ERs. The
joint venture will establish a state-of-the-art facility, adopting GE’s
“Brilliant Factory” concepts, combining advanced technologies and
lean practices with digitization and data analytics to enhance productivity.
Based in Singapore to handle SIA Group as well as thirdparty
MRO work, the joint venture will also present opportunities for
Singapore Airlines, in terms of job creation, training and additional
service offerings at the Singapore hub.
AviTrader MRO - June 2017