May 17, 2010 / 11:48 AM / 8 years ago

UPDATE 1-Magellan Q1 beats estimates on better demand in Canada

* Q1 EPS C$0.06 vs C$0.41

* Q1 rev C$177.9 mln vs C$179.3 mln

* Canada sector revenue up 17 pct to C$98.8 mln

May 17 (Reuters) - Aerospace industry supplier Magellan Aerospace Corp’s (MAL.TO) first-quarter results beat estimates despite a 61 percent fall in income, helped by strong demand in its Canadian segment.

The company earned C$3.1 million, or 6 Canadian cents a share, compared with net income of C$7.9 million, or 41 Canadian cents a share a year ago.

Revenue dipped by 1 percent to C$177.9 million, while revenue from the Canadian segment rose 17 percent to C$98.8 million.

Analysts on average were expecting earnings of 3 Canadian cents a share on revenue of C$175.5 million, according to Thomson Reuters I/B/E/S.

Magellan, which recently inked a $425 million supply deal with British engine-maker Rolls-Royce (RR.L) and its German unit, also said demand for new aircraft in the civil airline sector remains stronger than expected.

“Order rates are returning to more traditional levels, following slowness during the global economic crisis,” Magellan added.

Shares of the company closed at C$2.62 Friday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Don Sebastian)

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