Wesco Aircraft reported yesterday that net sales in the fiscal 2017 first quarter were $339.4 million, down 5.7 percent from $359.8 million in the prior-year first quarter. Net income was $13.1 million, or $0.13 per diluted share, in the fiscal 2017 first quarter, down from $20.6 million, or $0.21 per diluted share, in the same period last year.
Gross profit was $89.5 million in the first quarter of fiscal 2017, compared with $96.6 million in the fiscal 2016 first quarter.
The Valencia-based company is the world’s leading provider of supply chain management services to the global aerospace industry. The company’s services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time delivery and point-of-use inventory management.
“Our fiscal 2017 first-quarter results were negatively impacted by foreign currency translation, temporary disruptions to certain customers’ consumption patterns due to operational changes and extended site closures, and late production schedule revisions” by a major customer, said Dave Castagnola, president and chief executive officer, in a statement. “The challenges created by these events were partially offset by sales realized from recent new business wins.”
Castagnola expects sales to increase each quarter of 2017, with sales growth of three to five percnet for the year. “We continue to book significant wins and renewals in fiscal 2017, building on the value proposition Wesco provides to major aerospace and defense customers,” he said.
“Sales wins with strategic customers in fiscal 2016 and the first quarter of fiscal 2017 totaled approximately $130 million on an annualized basis, approximately half of which is expected to be realized in fiscal 2017,” Castagnola said. “We also have renewed long-term agreements with existing customers totaling $400 million on an annualized basis over the same period of time.”