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.
