PRECISION STANDARD continues to be affected by the late delivery of customer-supplied parts required for its US Air Force Boeing KC-135 depot-maintenance contract, but expects the problem to be resolved by mid-1996.
Late deliveries and "an unprecedented number of aircraft requiring major structural repairs" contributed to Precision's $1.4 million third-quarter loss on revenues of $29.1 million, compared with a loss of $0.7 million on revenues of $36.6 million for the same period in 1994.
The KC-135 programme accounts for half the Birmingham, Alabama-based firm's business. It recorded revenue of $3.1 million in the third quarter in anticipation of a settlement of its request for adjustment of the KC-135 contract, in addition to $2.1 million in provisional revenue in the second quarter of the year.
Precision says that its results were also hit by the slower-than-expected start-up of its Copenhagen, Denmark, commercial- aircraft maintenance base.
Source: Flight International
