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Rohr Industries Has Record Net of $47 Million : 24% Gain Comes Despite 1% Decline in Revenue

September 05, 1985|GREG JOHNSON | Times Staff Writer

CHULA VISTA — Riding a wave of new orders and rate increases on existing contracts, Rohr Industries on Wednesday reported a 24% increase in net income to a record $47 million for the fiscal year ended June 30. The increase came despite a 1% drop in revenue to $607 million.

Rohr's fourth-quarter earnings were $12.4 million, up 19%--the 20th consecutive quarter of improved profitability at the Chula Vista-based aerospace manufacturer. Revenue in the quarter rose 3% to $153.4 million.

Reduced interest expenses, a lower effective tax rate and a healthy blend of commercial, military and space programs contributed to a record 13.5% operating profit margin, according to Harry W. Todd, Rohr chairman, president and chief executive.

$1-Billion Backlog

Rohr produces components for commercial, military and business aircraft. Although the company once relied heavily on government contracts, commercial orders now account for 65% of its revenue, Rohr said.

Todd said that record airline profits boosted aircraft orders, adding that the company has a $1-billion backlog.

"Of the 208 commercial aircraft ordered (worldwide) through July, 1985, Rohr components support 195," Todd said.

During 1985, Rohr joined an international team that is developing the engine propulsion system for the European-based Airbus Industrie's A320 airliner. Rohr has a similar agreement with Airbus Industrie to provide a second engine-propulsion-system design.

In May, Rohr's Foley, Ala., plant made its first deliveries for the U.S. Air Force's new C-5B transport.

Citing Rohr's strong operating performance and improved balance sheets, both Moody's Investors Service and Standard & Poor's earlier this year raised Rohr's credit rating.

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