Wesco Aircraft Holdings Inc.
) announced extension of its contract with PCC Aerostructures, a
business wing of diversified metal components and manufacturer,
Precision Castparts Corp.
The terms of the contract will remain effective till Dec 31,
2016. The agreement offers supplementary services under an array
of just-in-time and long-term contracts with PCC
In addition, the extended contract will expand the number of
PCC Aerostructures' units and parts as was mentioned in the
original contract. Precision Castparts have a long-standing
business relationship with Wesco Aircraft. This collaboration
will allow Wesco Aircraft to meet the growing aerospace
infrastructural requirements of PCC Aerostructures with ease.
The company beginning in 2013 secured another extension for a
just-in-time agreement with Triumph Aerostructures - an
operating unit of
Triumph Group Inc.
). The deal will run through Oct 31, 2016.
We believe Wesco Aircraft's first-rate service quality and
efficient execution of contracts enabled the company to recieve
these contract extensions. Wesco Aircraft's share of product
purchase from Precision increased to 21% in fiscal 2012 from the
Meanwhile, the integration of Interfast Inc. has also
strengthened Wesco Aircraft's position in the market which will
aid it to clinch high-quality contracts in the future. Currently,
Wesco Aircraft holds a Zacks Rank #2 (Buy).
The increasing airline activities seen in the emerging
countries of Asia would cause demand for aircraft to rise
sharply. Companies like Boeing and Airbus are expected to profit
well from this growing trend. This in turn will benefit aerospace
industrial equipment providers like Wesco Aircraft.
Last month, Wesco received a large order from Airbus for the
delivery of aerospace fasteners and hardware components for
several of Airbus' aircrafts.
Another well placed aerospace company that stands to gain from
the demand hike is Zacks Ranked #1 (Strong Buy)
Erickson Air-Crane Incorporated
Valencia, Calif. based Wesco Aircraft distributes and provides
supply chain management services to the aerospace industry in
North America and internationally.
ERICKSON AIR-CR (EAC): Free Stock Analysis
PRECISION CASTP (PCP): Free Stock Analysis
TRIUMPH GRP INC (TGI): Free Stock Analysis
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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