Wesco Aircraft Extends GKN Contract - Analyst Blog

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Wesco Aircraft Holding Inc. WAIR, a provider of comprehensive supply chain management services to the global aerospace industry, announced the expansion of an existing just-in-time (JIT) contract with GKN Aerospace (“GKN”) through Dec 31, 2017.

Through such JIT contracts the company aims to expand its scope of product offerings and value-added services for its long-standing customers. Per the latest contract, the company has increased the number of stock keeping units (SKUs) for GKN's operations in the U.S. and Europe.

Most of Wesco's large contractors are now moving towards JIT contracts to drive cost efficiency and get improved services from Wesco.

To expand its operations, Wesco Aircraft Holding acquired Haas Group Inc. for $550 million in cash in Feb 2014. Since these companies have a similar line of business, it will enable the combined entity to cater to a larger customer base in a more efficient manner.

Wesco Aircraft Holding expects fiscal 2014 revenues in the range of $975 million to $1.01 billion reflecting an estimated year-over-year improvement of 8.1%–12.0%. The company hopes to achieve this target on the back of both organic and inorganic growth.

Wesco currently holds a Zacks Rank #1 (Strong Buy). Other players in the aerospace/defense sector include Huntington Ingalls Industries, Inc. HII, Northrop Grumman Corp. NOC and Lockheed Martin Corp. LMT. While Huntington Ingalls holds a Zacks Rank #1 (Strong Buy), Northrop Grumman Corporation and Lockheed Martin hold a Zacks Rank #2 (Buy).



HUNTINGTON INGL HII: Free Stock Analysis Report

LOCKHEED MARTIN LMT: Free Stock Analysis Report

NORTHROP GRUMMN NOC: Free Stock Analysis Report

WESCO AIRCRAFT WAIR: Free Stock Analysis Report

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