UPDATE 3-TransDigm Q2 results beat Wall Street view, shares up

martes 6 de mayo de 2008 20:00 CEST

(Adds conference call details, analyst comments, updates share movement)

By Bhaswati Mukhopadhyay

BANGALORE May 6 (Reuters) - Aircraft component designer TransDigm Group Inc (TDG.N: Cotización)posted better-than-expected quarterly results, helped by sales of its proprietary products as well as recent acquisitions, and raised its 2008 outlook, sending its shares up as much as 11 percent.

"About 90 percent of the company's products are truly proprietary," Lehman Brothers analyst Carter Copeland said.

Its product line includes overhead bin latches, ignition systems, power conditioning devices and lavatory faucets.

TransDigm, which reported an organic sales growth of 10 percent in the second quarter, is also a supplier of audio systems for Boeing's (BA.N: Cotización) 787 Dreamliner aircraft. The 787 program is now running about 15 months late after three delays.

"We do not believe the reschedule (of the 787 program) will have a material impact on our 2008 financial performance but, in any event, it is captured in our new guidance," CEO Nicholas Howley said in a conference call.

However, Lehman's Copeland said, "What makes a little bit of an impact is if the research and development effort drags on."

R&D costs are expected to remain flat in the third quarter and then taper off in the fourth quarter, assuming Boeing does not stretch the schedule any more, the company said in the call.   Continuación...