AviTrader_Monthly_MRO_e-Magazine_2017-06
AviTrader_Monthly_MRO_e-Magazine_2017-06
AviTrader_Monthly_MRO_e-Magazine_2017-06
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Finance News<br />
22<br />
on its own path of strong growth and high profitability. The contemplated<br />
acquisition of Zodiac Aerospace by Safran would create the<br />
world’s third-largest player in aerospace and the world’s secondlargest<br />
player in aircraft equipment<br />
IAI posts first-quarter <strong>2017</strong> net income of US$46m<br />
Israel Aerospace Industries (IAI), Israel’s largest national military and<br />
civilian security defense company, issued its consolidated financial<br />
statements for the three months ended March 31, <strong>2017</strong>. Operating<br />
income in the first-quarter <strong>2017</strong> totaled US$44m (5.3% of sales)<br />
compared with US$11m (1.3% of sales) in the first quarter of 2016.<br />
EBITDA in the first-quarter <strong>2017</strong> amounted to US$72m compared with<br />
US$38m in the first quarter of 2016. Net financial expenses amounted<br />
to approximately US$7m, similarly to the corresponding quarter of<br />
2016. Net income in the first-quarter <strong>2017</strong> amounted to US$46m<br />
(5.5% of sales) compared with net income of US$11m (1.3% of sales)<br />
in the first quarter of 2016. The order backlog at the end of the firstquarter<br />
<strong>2017</strong> totaled US$9.3bn compared with US$9bn at the end of<br />
2016. 71% of the order backlog is held for sale to foreign customers<br />
with wide geographical dispersion. The order backlog is comprised of<br />
a wide variety of products and secures two-and-a-half years of operation.<br />
With the addition of the mega engagements signed and reported<br />
after the date of preparation of the financial statements, the order<br />
backlog currently amounts to US$11bn.<br />
SIA Engineering Company and GE Aviation to form<br />
Engine Overhaul Joint Venture<br />
SIA Engineering Company and GE Aviation have agreed to establish<br />
a new engine overhaul joint venture based in Singapore.<br />
The joint venture will provide a full range of engine maintenance,<br />
repair and overhaul (<strong>MRO</strong>) services for the GE90 and GE9X engines.<br />
The GE90 engine exclusively powers the Boeing 777-300ER<br />
and 777-200LR, and the GE9X engine is the sole engine selection<br />
for the Boeing 777X aircraft. The formation of the joint venture,<br />
where GE will have a 51% equity stake and SIAEC holding the remaining<br />
49%, is subject to finalization of the definitive agreements<br />
and receipt of required regulatory approvals. This partnership,<br />
which is expected to have benefits to and beyond the SIA Group,<br />
is made possible by Singapore Airlines’ announcement in February<br />
<strong>2017</strong> of a letter of intent for 39 Boeing widebody aircraft valued at<br />
US$13.8bn, which includes 20 777-9s powered by GE9X engines.<br />
SIA is also a major operator of GE90-powered 777-300ERs. The<br />
joint venture will establish a state-of-the-art facility, adopting GE’s<br />
“Brilliant Factory” concepts, combining advanced technologies and<br />
lean practices with digitization and data analytics to enhance productivity.<br />
Based in Singapore to handle SIA Group as well as thirdparty<br />
<strong>MRO</strong> work, the joint venture will also present opportunities for<br />
Singapore Airlines, in terms of job creation, training and additional<br />
service offerings at the Singapore hub.<br />
<strong>AviTrader</strong> <strong>MRO</strong> - June <strong>2017</strong>