TORONTO—Magellan Aerospace Corp. has won a multi-year contract extension with European plane maker Airbus Group for work on the A350 XWB aircraft program.
The Canadian aerospace company announced the deal March 8 as it posted its 2016 fourth-quarter earnings.
Under the contract, Magellan will supply Airbus with crown modules for the twin-engine jet program. It said it will build the components at its plants in the U.K., Poland and India and ship them to Airbus assembly lines in France and Germany.
Meanwhile, the company posted a 2.2 per cent decline in revenue from the same quarter last year. Magellan reported $247.1 million in 2016 fourth-quarter revenue, compared to $252.6 million the year before. It also saw a small decline in net income for the final three months of 2016. Magellan said its income was $24.0 million in 2016 compared to $25.5 million for the fourth quarter of 2015.
Following the results, the company’s shares were down approximately 3.5 per cent in early trading March 9.