May 12, 2009 / 4:57 PM / 9 years ago

UPDATE 2-Vector Aerospace Q1 earnings more than double

* Q1 EPS C$0.24 vs. C$0.10 last year

* Revenue up 67 pct

* Sees higher earnings in 2009

* Shares up 9 pct (Adds details, analyst comments; updates share movement)

By R. Manikandan

BANGALORE, May 12 (Reuters) - Canadian aviation repair company Vector Aerospace Corp’s RNO.TO quarterly profit more than doubled, helped by purchase of a British military helicopter repair company, and it forecast higher earnings in 2009, sending its shares up over 9 percent.

For the first quarter ended March 31, the company posted net income of C$9.2 million ($7.9 million), or 24 Canadian cents a share, up from C$3.9 million, or 10 Canadian cents a share, in the year-ago quarter.

Two analysts, on an average, expected earnings of 14 Canadian cents a share, according to Reuters Estimates.

“They certainly exceeded expectations. Looks like they have done much better than expected in terms of operating margins,” analyst Chris Murray of CIBC World Markets told Reuters.

Revenue from continuing operations soared 67 percent to C$140.7 million.

The company’s Fixed-wing segment revenue increased to C$67.7 million from C$50.9 million last year. However, operating margin for the segment declined to 10.6 percent from 11.6 percent a year ago.

The segment provides aviation maintenance, repair and overhaul services on turboprop and turbofan gas turbine engines for military, commercial, industrial and corporate customers.

Helicopter-UK segment, formerly known as Defence Aviation Repair Agency (DARA), generated revenue of C$38.8 million and posted an operating margin of 15 percent for the quarter.

Vector acquired DARA Rotary Wing and Components operations from the United Kingdom Ministry of Defence in April last year.

The company certainly has opportunities to grow in U.K business and has room for some more margin expansion, Murray added.

Shares of Vector Aerospace, which has operating facilities in Canada, Britain and Africa, were up 30 Canadian cents at C$4.50 in afternoon on the Toronto Stock Exchange.

$1=1.163 Canadian Dollar Editing by Himani Sarkar, Anil D'Silva

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