Magellan Aerospace, New York, Inc.

  • Overview

Magellan Aerospace navigates the frontiers of civil and defense aviation. The company manufactures aeroengines, aerospace components, and related systems through subsidiaries in Canada, the US, and UK. A short list of Magellan's products includes front, mid, and exhaust casing and frames; bypass ducts; engine and transmission cowlings; aircraft and helicopter fuselages; and suborbital and meteorological rockets. The company also supplies parts for energy markets and offers jet engine and component repair and overhaul (R&O) services. Major customers have included Boeing, AirbusRolls-Royce, Lockheed Martin, the US and Canadian air forces, and NASA

Almost 90% of Magellan's revenues derive from the aerospace market, and its two major product lines within this segment are aerostructures and aeroengines. The remainder of the company's revenue is generated from its work on an industrial power generation contract in Africa that is expected to be completed in 2012. The contract involves an agreement with the Ministry of Energy in the Republic of Ghana to serve as the prime contractor at a new power generation plant in the country.

Commercial customers account for about two-thirds of Magellan's sales; defense markets make up the remaining revenue each year. Magellan primarily serves the North American market (around 80% of total revenue), but it also serves customers in the UK (roughly 20%).

Overall, total revenues declined about 7% from 2010 to 2011, but the company's profits climbed by 44% over that same time period. Magellan has benefited from an increase in civil airline production rates, particularly in countries in Asia, and a global demand for more fuel efficient aircraft. On the downside, Magellan's defense market segment is vulnerable to decreases in government budgets and aircraft department budget cuts. Over the years, the reduction of military engagements in Iraq, Afghanistan, and other countries has resulted in weaker demand for the company's defense products.

Magellan is exploring growth opportunities in other emerging markets, such as China and India, where economic and population growth is fueling the need for new power plants. In addition, the company has been courting government customers in North America and Europe that are in need of space exploration components. Magellan has, for instance, ramped up its development of satellite buses and related products.

In mid-2012 Magellan acquired John Huddleston Engineering (JHE), a firm with expertise in the manufacturer of precision machined aerospace components. The deal fortified Magellan's core manufacturing operations and gained it additional facilities in Great Britain, Northern Ireland, and Poland.

N. Murray Edwards, the company's chairman, owns 28% of Magellan's common stock.

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Magellan Aerospace, New York, Inc.


9711 50th Ave
Corona, NY 11368-2740
Phone: 1 (718) 699-4000
Fax: 1 (718) 5920722
www.magellanaerospace.com

STATS


  • Employer Type: Unknown
  • Ceo- Pres: James Butyniec
  • Cfo: John Dekker
  • Chb: N Edwards

Major Office Locations

  • Corona, NY
  • Boston, MA