Posted On: 04/01/2016 6:58:24 PM
Post# of 22940
$TPAC Awesome reply, Mag! The angle on Spirit is another really solid avenue, and one we may be lucky enough to land, provided they were involved in bearing making. The Spirit contract expired 2/29 and was not renewed.
"Sales of spares are less than 5 percent of Sprit's $6.6 billion in annual revenue, and are a part of the market that struggled last year as airlines cut back on stocking spare parts, said Ken Herbert, an aerospace analyst at Canaccord Genuity. But the business is important and helps supply Spirit's own repair operations with replacement parts at low cost.
"Spares tend have pretty attractive margins," he said."
Source: http://www.reuters.com/article/us-boeing-spir...SKCN0WY360
6,600,000,000 * .05 = 330,000,000
Out of 330M in spare parts, I wonder how much of that is allocated to bearing needs. If even 0.5% is thrown our way, that equates to 1.5M in revs with a 70% profit margin(see TPAC business plan), totalling 1.05M of the 1.5M tallied as profit.
And that is just from the potential hole from Spirit, not from all of Boeing internationally. What I can't find is whether or not Spirit was a provider of bearings. I did not see anything about bearings when looking at their overview, but that could have easily been missed or overlooked while giving it a quick once over.
"Sales of spares are less than 5 percent of Sprit's $6.6 billion in annual revenue, and are a part of the market that struggled last year as airlines cut back on stocking spare parts, said Ken Herbert, an aerospace analyst at Canaccord Genuity. But the business is important and helps supply Spirit's own repair operations with replacement parts at low cost.
"Spares tend have pretty attractive margins," he said."
Source: http://www.reuters.com/article/us-boeing-spir...SKCN0WY360
6,600,000,000 * .05 = 330,000,000
Out of 330M in spare parts, I wonder how much of that is allocated to bearing needs. If even 0.5% is thrown our way, that equates to 1.5M in revs with a 70% profit margin(see TPAC business plan), totalling 1.05M of the 1.5M tallied as profit.
And that is just from the potential hole from Spirit, not from all of Boeing internationally. What I can't find is whether or not Spirit was a provider of bearings. I did not see anything about bearings when looking at their overview, but that could have easily been missed or overlooked while giving it a quick once over.
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