Rohr Industries Reports Gain of 24% in Net Income

Riding a wave of new orders and rate increases on existing contracts, Rohr Industries Wednesday reported a 24% increase in net income, to a record $47 million, for the fiscal year ended June 30, despite a 1% drop in revenues, to $607 million.

Rohr’s fourth quarter earnings were $12.4 million, up 19%--the 20th consecutive quarter of improved profitability at the Chula Vista-based aerospace manufacturer. Revenues in the quarter rose 3% to $153.4 million. Reduced interest expenses, a lower effective tax rate, and a healthy blend of commercial, military and space programs contributed to a record 13.5% operating profit margin, according to Harry W. Todd, chairman, president and chief executive.

Rohr produces components for commercial, military and business aircraft. Although the company once relied heavily on government contracts, commercial orders now account for 65% of company revenues.

Record airline profits boosted aircraft orders, Todd said, adding that the company has a $1-billion backlog. “Of the 208 commercial aircraft ordered (worldwide) through July, 1985, Rohr components support 195,” Todd said.

During 1985, Rohr joined an international team that is developing the engine propulsion system for the European-based Airbus Industrie’s A320 airliner. Rohr has a similar agreement with Airbus Industrie to provide a second engine propulsion system design.

C-5B Deliveries

In May, Rohr’s Foley, Ala., plant made its first deliveries for the new U.S. Air Force’s C-5B transport.

Citing Rohr’s strong operating performance and improved balance sheets, both Moody’s Investor Services and Standard & Poors earlier this year raised Rohr’s credit rating.