Parts supplier Wesco Aircraft Holdings Inc. set company records in 2011 with $181.3 million and $710.9 million in fourth-quarter and full-year sales, respectively, the firm reported Thursday.
Based in Valencia, Wesco is a leading provider of supply chain management services to the global aerospace industry. It says it maintains the world’s broadest inventory of aerospace parts, including hardware, bearings, tools, electronic components and machined parts.
Despite the higher sales, the company posted fourth-quarter net earnings of $18.0 million (19 cents per share), down from $20.0 million (22 cents) a year earlier due to equity incentive plans, expenses related to Wesco’s initial public offering, and a higher effective tax rate on foreign sales of U.S. products.
Without the higher tax obligation, the income picture would have been reversed. Fourth-quarter pre-tax earnings were $46.1 million versus $44.7 million a year earlier. The company attributed the increase to higher sales and better profit margins.
Both pre-tax and after-tax net earnings for the full year climbed to $179 million (versus $166.5 million in 2010) and $90.1 million (from $81.3 million), respectively.
The company said it generated $81.2 million of free cash flow in 2011 and paid down $64.2 million of long-term debt.
“We have remained focused on supporting our customers and executing on several new contracts, which has generated record revenues for Wesco,” President Randy Snyder said in a statement. “Our ability to grow in a challenging economic environment highlights the effectiveness of our business model, the passion of our employees, and our commitment to deliver on the promises we make to our customers. We are very excited about our opportunities in the coming year.”
The company is anticipating a 7 percent to 10 percent rate of revenue growth in the coming year, with an earnings target of 98 cents to $1.02 per diluted share.