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About Advanced Input Devices, Inc.

TransDigm Group designs, produces, and supplies a variety of highly engineered proprietary aerospace components, including audio systems, pumps and valves, and power conditioning devices, among others. Operating through a plethora of subsidiaries, TransDigm makes and distributes systems and components for commercial and military aircraft. Its products are found in several Boeing (formerly Aviall) and Satair A/S (a subsidiary of Airbus) airplanes. TransDigm acquired Esterline for about $4 billion in 2019, later that year it planned to divest the Esterline to KPS Capital. 

Operations

TransDigm operates in three segments: Power and Control (contributing roughly 55% of revenue), Airframe (about 45%), and Non-aviation (less than 5%).

The Power and Control segment makes and sells systems and components that provide or control power for aircraft. Its products operate through electronics, fluid (hydraulic), and mechanical motion control. The segment offers mechanical/electro-mechanical actuators and controls, ignition systems, pumps and valves, power conditioning devices, AC/DC electric motors and generators, and cargo loading systems, among others.

The Airframe division produces non-powered systems and products that are used in the airframe, for example, latching and locking devices, engineered connectors and elastomers, cockpit security components, aircraft audio systems, and more.

The Non-aviation segment includes products such as headsets for high-noise, medium-noise, and dismounted applications, seat belts and safety restraints for ground transportation applications, among others.

Overall, its organic sales generated around 85% of total sales, while acquisition sales accounted for the rest.

Geographic Reach

Cleveland, Ohio-headquartered TransDigm maintains approximately 105 manufacturing facilities throughout the US, Canada, Mexico, Europe, and Asia.

Sales and Marketing

The company sells its products primarily through its own sales and marketing organization with a business unit manager assigned to specific products and supported by account managers and sales engineers. TransDigm also uses several distributors that provide logistical support and serve as the primary customer contact for certain smaller accounts. Its major distributors are Boeing (formerly known as Aviall) and Satair (a subsidiary of Airbus). The company's top ten customers account for about 45% of sales.

TransDigm's business serving customers in the commercial, regional, business jet, and general aviation aftermarket accounts for around 25% of total sales. The commercial aerospace OEM market, comprised of large commercial transport manufacturers and regional and business jet manufacturers, accounts for roughly 25% of total sales. The defense market represents nearly 45% and non-aerospace sales make up about 5%.

Financial Performance

The company's revenue decreased by 2% to $5.1 billion in 2019 (ended September) compared from the prior year with $5.2 billion. The decrease in organic sales for 2020 (ended September) compared to 2019 (ended September) is primarily related to decreases in commercial aftermarket sales ($410 million, a decrease of 26%), commercial OEM sales ($355 million, a decrease of 25%) and other non-aerospace sales ($9 million, a decrease of 3%); partially offset by an increase in defense sales ($49 million, an increase of 3%).

Net income attributable to TD Group decreased $191 million, or 22%, to $699 million 2020 (ended September) compared to net income attributable to TD Group of $890 million for 2019 (ended September).

Cash held by the company at the end of 2020 (ended September) increased to $4.7 billion. Cash provided by operations, investing and financing activities were $1.2 billion, $799 million, and $1.2 million, respectively.

Strategy

TransDigm business strategy is made up of two key elements: a value- driven operating strategy focused around its three core value drivers and a selective acquisition strategy.

Value – driven operating strategy three core value drivers are obtaining profitable new business, improving its cost structure and providing highly engineered value-added products to customer by focusing on the engineering, manufacturing and marketing. TransDigm selectively pursue the acquisition of proprietary aerospace components business when they see an opportunity to create value through the application of its three-core value-driven operating strategies.

Consistent with overall strategy, its sales and marketing organization is structured to continually develop technical solutions that meet customer needs. TransDigm attempt to focus on its products and programs that will lead to high-margin, repeatable sales in the market.

Another revenue producing endeavor arises from the proliferation of its componentry across manufacturers and industries. It has a large install base, estimated to be over 100,000 aircraft, for which it is typically the sole source of replacement and aftermarket products.

Mergers and Acquisitions

The company went beyond that pattern in 2019, when it spent $4 billion to buy Esterline Technologies Corp, an aerospace and defense parts supplier with a large aftermarket portfolio including knobs, sensors, and materials based in Bellevue, US. Esterline, which had $2 billion in annual revenue, brings its platform of proprietary and sole-source products for the aerospace and defense industries, including significant aftermarket offerings. The acquisition of Esterline expands TransDigm's platform of proprietary and sole source content for the aerospace and defense industries, including significant aftermarket exposure.

Advanced Input Devices, Inc.

600 W Wilbur Ave
Coeur D Alene, ID 83815-9496
Phone: 1 (208) 765-8000

Firm Stats

Employer Type: Privately Owned
Director Of Pharmacy Services: Scott Byre
Vice President Engineering: Craig Moss
V Pres: James Tsadilas
Employees (This Location): 325
Employees (All Locations): 330

Major Office Locations

Coeur D Alene, ID