Controversial Joint Strike Fighter program buoys Quickstep
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The Australian government’s Joint Strike Fighter has been a boon for industry, including junior aerospace manufacturer Quickstep.
The $44 million company reported a 13 per cent increase in revenues for the half year, largely off the back of the overhaul of the aircraft.
Quickstep (ASX:QHL) told the market production for the program had increased 53 per cent compared to the prior corresponding period, and would only ramp up from here.
“JSF revenue will continue to increase in the second half of FY18. As JSF production increases in volume over the next two financial years it will drive significant productivity benefits,” chief Mark Burgess told the market.
Niche Australian manufacturers like Quickstep have reportedly scored $1 billion in contracts to supply parts and equipment in line with the project.
For QHL, it has been a whole lot of doors, panels, fuselage parts and vertical tail components.
Quickstep reported revenues of $27.6 million for the half year, but was still trading at a net loss of $2.8 million.
It told the market it was on a path to reduce costs with its ‘OneQuickstep’ change strategy – including the consolidation of its R&D operations to Geelong – and expected a reduction of $3.5 million for the year.
Shares in the company opened at 7.8c.