Airframe parts and components company AirframeParts International Inc. (NYSE:AFI) expects third-quarter revenue to grow 4.5% to $2.6 billion, and earnings to increase 4.3% to 76 cents per share, its chief executive officer, Michael Fischke, said on Tuesday.
The company also expects revenue growth to be driven by the launch of new products, the growth of its customers and strong growth in the U.S.
The company, which specializes in aircraft parts and systems, said its third-half revenue increased 11.4% to nearly $3.4 billion.
That was mostly due to strong growth from its customers, which are primarily Boeing Co. (NASDAQ:BA) and Airbus Group SA (NYSE :AIG), and a surge in demand for parts from customers in Europe and Asia, Fischki said in a statement.
The strong growth comes despite a slowdown in demand, he said.
Fischkes’ company expects its third quarter to be more than $4 billion in revenue.
The U.K.-based company said the sales of its parts and products increased by more than 20% in the quarter, while the number of orders for the company’s aircraft parts dropped 2.7% to 9.4 million.
Fischke said that growth in third-party customers, particularly from the European market, has helped offset a slight drop in demand from customers who want to buy the parts directly.
The sales numbers are part of a broader turnaround in the company, Fichkes said.
In the first quarter of the year, the company had revenue of $3 billion, a number that had dropped to $1.9 billion in the second quarter, he added.
The earnings report comes amid growing concerns about the future of the U-Haul fleet and whether it will survive in the face of the Trump administration’s planned border tax, which the U,S.
and Canada have been discussing for weeks.
Fichkes also reiterated the company is committed to continuing to improve the quality of its products and to developing new products that are more efficient and reduce costs.
The sales results come on the heels of the company cutting its workforce by 3% to 1,200 people in the third quarter.
The stock is up nearly 4% so far this year, after closing at a low of $5.19 in October.