TORONTO - Magellan Aerospace Corporation (TSX:MAL) has reported a 12.1 per cent increase in revenue in the third quarter, but a smaller net profit due to a one-time, extraordinary gain in the comparable year-earlier period.Simple question.
The Mississauga, Ont.,-based supplier of components and products to the aerospace industry and to utilities, says net income amounted to $9.5 million, or 16 cents per share, in the three months to Sept. 30.
That compared with $14.8 million, or 26 cents, in the same 2012 quarter when it realized a one-time after-tax bargain purchase gain of $7.4-million in the acquisition of John Huddleston Engineering Ltd.
Under accounting rules, a buyer is required to record the difference between the fair value of an acquired asset and the purchase price as a gain on its statement of income.
Revenue rose to $181 million from $161.4 million.
How is the F-35 ever going to be affordable for the taxpayer, yet continue to return for the many investors worldwide?
Answer.
Its never going to be affordable. The plane is being marketed and chopped up into so many bits that its going to make a tidy little profit for those involved, then price itself out of contention and then everyone will say "we can't afford this, so lets start over and build a good enough airplane".
Air Power Australia, Sweetman, ELP and others labeled this a ponzi scheme.
This news story shows that they were right. I have only a limited knowledge of economics but the F-35 business model MAKES NO SENSE! There is no way (unless they can charge outrageous prices and get it) that it should even produce a TINY profit. Yet while the Pentagon and Program Office are claiming cost savings we're seeing every company involved post profit after profit. I continue to state that we're seeing something that rivals Enron in its complexity and illegality. They (the bean counters) know it too. They're just too scared to say so.
The JSF was never going to work.
ReplyDeleteWhen the powers that be decided that they could "save money" by grouping the F-16, F-18, AV-8, A-10, and F-117 replacement into one aircraft; that's when it went all downhill. LockMart isn't run by a group of dribbling idiots. They must have known that no amount of engineering could build such an aircraft without it costing an arm and a leg to develop and build. But since a trillion-dollar contract is too good to pass up, they did what they did with the F-22, and the Space Shuttle before it... Make it politically impossible to kill.
Being a bigger project than the F-22 or the Space Shuttle, they needed to up the stakes, however. Eurofighter showed that a multinational project like the Typhoon is nearly impossible to kill, even if its members don't want it anymore. Instead of making parts in a variety of different states, they upped the ante by going global. Now, its not just Senators and Congressmen in their pockets, but foreign governments as well.
Even if the US Senate sat tomorrow, and unanimously decided to kill the F-35, there would still be outcry by all the partner nations demanding those contracts be honored for whatever widgets are made in Canada, Italy, Isreal, or wherever. They all paid into the JSF, they're going to want a return on their investment.
LockMart has succeeded in its goal. It doesn't matter how late, how broken, or how lousy the F-35 is going to be, its going to happen. It simply is too big to kill at this point. The best we can hope for is that someone will smarten up, slash production drastically (like the F-22 and B-22) and go Manhattan project on a fighter design that actually works.
Soar twelve percent ? Better to soar at sixteen percent.
ReplyDeleteOct 1, 2013
Getting a higher payout each year is a good thing. Aerospace giant and defense contractor Lockheed Martin (LMT) has done just that for its shareholders for just over a decade.
Last week, the company raised its quarterly dividend by 16% to $1.33 a share. The dividend will be paid Dec. 27 to shareholders of record Dec. 2.
"We're proud to deliver to our shareholders the 11th consecutive annual double-digit increase of the Lockheed Martin quarterly dividend rate," said CEO and President Marillyn Hewson in a press release.
Lockheed Martin's dividend has now more than doubled in the past three years. At the new rate, the company pays $5.32 a year. This works out to a yield of about 4.2% vs. around 2.5% for the S&P 500 index. It has the second highest yield among the 27 dividend-paying stocks in the Aerospace/Defense group.
And executive compensation -- a reward for a job well done :-)) -- rose 18%
Total Executive Compensation - LMT
2011 57.83 mil
2012 68.53 mil +18.5%
2012 compensation
--Robert J. Stevens/Chairman of the Board and Chief Executive Officer -- $25,369,641
--Marillyn A. Hewson/President and Chief Operating Officer -- $11,390,322