Leading composites manufacturer Quickstep (ASX: QHL) has reported fast-growing sales on the back of strong orders from defence and aerospace customers.
The Sydney company reported sales up 14 per cent to $18.9 million in the December quarter and strong operating cash flow of $3.6 million.
With first half sales of $38.4 million the company has upgraded its outlook for the year and now expects to deliver 10 per cent year on year sales growth.
The company told investors it had secured additional incremental orders from customers on the basis of quality, delivery and cost competitiveness.
This was in addition to additional orders for parts for the F-35 Lightning fighter previously announced.
“The shipment delays that were a drag on (first quarter) cash flow have been resolved and the related customer payments received.
“Inventories have decreased by $3.4 million over (the second quarter).”
During the quarter:
# F-35 production ramped up
# Product qualification batches of the company’s new MJU-68 flare housing were delivered
# Demand for C-130J Super Hercules parts increased
# The Advanced Manufacturing Growth Centre awarded Quickstep a $700,000 co-funded grant to develop its AeroCure advanced composites manufacturing process.
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