Reported smaller net profit due to one-time, extraordinary gain in same quarter of 2012
TORONTO—Magellan Aerospace Corp. has reported a 12.1 per cent increase in revenue in the third quarter, but a smaller net profit due to a one-time, extraordinary gain in the comparable year-earlier period.
The Mississauga, Ont.-based supplier of components and products to the aerospace industry and to utilities, says net income amounted to $9.5-million, or 16 cents per share, in the three months to Sept. 30.
That compared with $14.8-million, or 26 cents, in the same 2012 quarter when it realized a one-time after-tax bargain purchase gain of $7.4-million in the acquisition of John Huddleston Engineering Ltd.
Under accounting rules, a buyer is required to record the difference between the fair value of an acquired asset and the purchase price as a gain on its statement of income.
Revenue rose to $181-million from $161.4-million.