UNC's earnings increase on 38% jump in revenues Quarter is bolstered by a month of results from Garrett Aviation

July 26, 1996|By Suzanne Wooton | Suzanne Wooton,SUN STAFF

Boosted by an upswing in the aviation industry, UNC Inc., the Annapolis-based aviation services company, yesterday announced sharp increases in earnings and revenues for the second quarter of 1996.

The company reported revenues of $181.3 million, compared with $131.3 for the comparable period a year ago, a 38 percent increase. Net earnings were $1.4 million, or $.07 per share, compared with $959,000, or $.05 a share, in the second quarter of 1995. Operating income jumped from $6.4 million during the second quarter of 1995 to $8.8 million, a 38 percent increase.

The company's second-quarter performance reflected one month of results by Garrett Aviation Services, a Phoenix-based company that UNC acquired in the spring. The deal, completed in late May, made UNC the world's largest independent aviation services company.

The $150 million acquisition increased the company's size by 62 percent, giving it annual revenues of nearly $1 billion and a combined work force of 6,900.

"The integration of Garrett Aviation into UNC is completed, and we are focusing on the cost-saving synergies and growth opportunities that exist between Garrett and our other operations," Dan A. Colussy, chairman, president and chief executive officer of UNC, said yesterday as the company announced its second-quarter results.

UNC makes parts for commercial jetliners, remanufactures jet engine and aircraft components, refurbishes helicopters and provides aircraft maintenance for corporate aircraft. The Garrett acquisition increases UNC's share of the business aviation services market from 22 percent to 52 percent at a time when there has been a surge in the delivery of private aircraft.

While Garrett developed a strong engine-repair and overhaul business, it did not specialize in repairing parts, as UNC does. Because of the acquisition, UNC expects to receive roughly $50 million a year in parts-repair business that Garrett had contracted elsewhere.

UNC experienced significant losses during the early 1990s, largely because of a sharp downturn in the airline industry. To reduce costs and address changes in the aviation industry, the company revamped some operations in 1994. Last year, it earned $1.9 million, compared with a loss of $67.9 million a year earlier.

Pub Date: 7/26/96

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