Heico Corp.'s flight support group (FSG) posted a 6% jump in year-over-year sales to $258 million in the company's fiscal third quarter, riding both strong replacement-part and repair demand and overcoming production-rate slowdowns on a few key platforms that the company has parts on.
Factoring out the OEM-related slowdowns and a few defense-industry product shipment delays, FSG boosted year-over-year growth by 11%, says Eric Mendelson, FSG's president.
"Over the last couple of years, the build rates in the 777 and the A380, which require a lot of interior components, have slowed, and that hasn't been entirely made up with the 787 and A350," he told analysts on a recent earnings call.
The growth was primarily volume-driven, Heico executives note, while aftermarket work across the board was strong.
Looking ahead, Heico is projecting full-year growth in the high single-digits for FSG, with half of it generated organically.
Heico boosted net income 9%, to $45.7 million in the period, which ended July 31 on sales of $391.5 million, a 10% increase.