Esterline Jets Feel Turbulence

Esterline Technologies Corp. (ESL - Snapshot Report) announced that Q3-08 EPS should be in the range of $0.55 to $0.60 because of the slippage in talks with the Canadian government regarding an R&D proposal.

However, the company also reiterated its full-year EPS guidance in the range of $3.45 to $3.55, with the likely result being more toward the high side. The Q3-08 conference call will be held on Thursday, August 28, at 5 p.m. EDT. Our estimates have been adjusted to reflect this announcement.

Esterline Corporation announced that terms-and-conditions discussions with the Canadian government regarding a research and development investment proposal, and the related claim under a government assistance program, have been deferred until after the Canadian Parliament’s summer recess.

ESL’s management indicated that the flurry of activity surrounding Bombardier’s recent announcement regarding the launch of its new C-Series family of single-aisle jets, and its related negotiations with Canada over launch investment, influenced the timing of Esterline’s discussions with Industry Canada’s Industrial Technologies Office’s Strategic Aerospace Defense Initiative (SADI) committee. Esterline’s talks regarding the proposal to SADI are now targeted for September.

Read the full analyst report on ESL

Read the full analyst report on ESL