Boston, MA 05/12/2014 (wallstreetpr) – Air Industries Group Inc (NYSEMKT:AIRI) continues to remain solid with positive results during its three months period ended March 31, 2014.
Efficient in operation
Consolidated net sales increased by 8% to $15.5 million from $14.3 million a year’s ego. The rise was due to increase in revenues recognized by Welding Metallurgy and Nassau Tool Works. However, Air Industries Machining, which represents 50% of total revenue, reported revenue of $7.1 million, down by 5% compared to $7.5 million in the same period 2013.
During the period, Welding Metallurgy’s revenue was $3.3 million (+6%) and Nassau Tool Works’ revenue of $5 million (+32%).
The increased sales improved the consolidated gross profit to $4 million and margin to 26% and consequently increased the operating income to $1.2 million (+4%) and net income to $341,000 (+22%) or $0.06 per diluted share (+20%). EBITDA during the period was $2.2 million.
Healthy growth prospects
Aerospace is a highly competitive long term growth industry, primarily led by commercial aircrafts. The commercial segment is currently focusing on replacement of existing high fuel consumed aircrafts with next generation planes with wide-body to reduce their operating costs. So, the demand is very high and increasing contacts over commercial aerospace will drive revenue significantly in the future.
Air Industries Group Inc (NYSEMKT:AIRI) is well positioned as an aerospace and defense manufacturing company with strong customer base including the global leading players like Sikorsky, Lockheed Martin, UTC and Boeing. So, strong relationships with key customers will create cross selling opportunities that will help to increase its market share and future growth in revenue and EBITDA.
The addition of Woodbine, New England and Southwest will further improve the Company’s operating efficiency going forward.
Risks that matter
Air Industries Group Inc (NYSEMKT:AIRI) business mostly depends on military procurement. So, any changes in defense budgets will either delay or cancel the procurement process. Moreover, competitive bidding process in the commercial segment may further affect the overall business significantly.
