TransDigm Group Incorporated (NYSE: TDG), a global designer, producer and supplier of highly engineered aircraft components, has reported results for the second quarter ended March 31, 2018, the company said.
Net income from continuing operations for the quarter rose 29.6% to USD 201.8 million, or USD 3.63 per share, compared to USD 155.7 million, or USD 2.78 per share, in the comparable quarter a year ago.
The current quarter was positively impacted by a lower effective tax rate due to the US Tax Cuts and Jobs Act (tax reform) of 18.3% compared to 27.7% in the second quarter of 2017. The balance of the increase in net income primarily reflects the increase in net sales described above and improvements to our operating margin resulting from the strength of our proprietary products and continued productivity efforts. This growth in net income was partially offset by higher interest expense.
Net loss from discontinued operations in the quarter was USD 5.6 million, or USD 0.10 loss per share attributable to the sale of Schroth.
Adjusted net income for the quarter rose 24.5% to USD 210.8 million, or USD 3.79 per share, from USD 169.3 million, or USD 3.03 per share, in the comparable quarter a year ago. Adjusted earnings per share in the current fiscal year includes USD 0.41 of favorable impact from the enactment of tax reform. Excluding this favorable tax impact, current earnings per share of USD 3.38 increased 11.6% over the prior year.
TransDigm Group, through its wholly owned subsidiaries, is a global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today.