TransDigm Group Incorporated (TDG)’s Q1 2015 Earnings Conference Call Transcript

Ken Herbert – Canaccord

Okay. That is helpful.

Nick Howley – Chairman of the Board, Chief Executive Officer

That was never going to move anything. That’s never going to move anything.

Ken Herbert – Canaccord

Yes. It’s a smaller deal. I guess with EME in particular being obviously based in Europe & in Germany in particular, currency risk aside because who knows about that but has your experience with that acquisition changed your appetite at all for European transactions? Maybe you opened it up a little bit anything we could infer from just your experience now almost a year in with EME that might alter your thinking as you review European ?

Nick Howley – Chairman of the Board, Chief Executive Officer

We feel okay about that. I think we feel ok about it. We see acquisitions with the right value proposition. We feel fine about them. I would remind you, we have a business in Belgium, we have a business in Germany now, we have a couple of businesses in U.K. that were operating. So we have I would say in general not 100%, but mostly our experiences has been positive.

Ken Herbert – Canaccord

Okay. That’s good & then just finally, just to follow up on the commercial aftermarket discussion. To your comment Nick that in an environment like this when the airlines have better visibility on profit you are maybe not seeing utilization change in terms of the older aircraft or pulling them out of the desert or anything their willingness to spend on new aircraft translate to the aftermarket environment either in terms of maybe they might take a different approach the airlines, different approach to their own working capital their own inventory levels, their safety stocks, [Inaudible] Do you expect perhaps to see that as we go through the year assuming ongoing lower crude prices?

Nick Howley – Chairman of the Board, Chief Executive Officer

Typically we have. Typically that’s what happens as you know when they start to be profitable & they get money they start buying more. Start buying more everything airplanes, parts, everything. I can’t say we have seen it yet but that would be a not a typical pattern. As I said before I don’t think this situation of these low significant drop in fuel prices has been in there long enough that it’s changing people’s behavior yet.

Ken Herbert – Canaccord

Okay. Alright. I appreciate it. Thank you very much.

Operator

Thank you. The next question comes from Michael Ciarmoli from KeyBanc. Go ahead sir.