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

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Michael Ciarmoli – KeyBanc

Hi. Good morning guys. Thanks for taking my questions. Nick maybe just back on defense. It clearly sounds like you have got some the orders you were waiting for on the airborne side & I am just curious were you guys expecting those orders to come in when you laid out your initial guidance. I know you talked maybe there was potential upside to defense this year but I am trying to get a sense of whether or not the airborne order flow was baked into this year’s outlook?

Nick Howley – Chairman of the Board, Chief Executive Officer

We definitely had an increase in this year outlook for airborne. We expected a pickup.

Michael Ciarmoli – KeyBanc

Okay.

Nick Howley – Chairman of the Board, Chief Executive Officer

& at least first, one quarter end it is looking quite strong & the pipeline looks strong.I don’t want to start to pull out our full year guidance between operating units but it surely makes us feel better rather than worse.

Michael Ciarmoli – KeyBanc

Sure & then what about just broad commentary about your remaining traditional military aftermarket activity are you seeing any movement there? I know there are some other companies expecting aftermarket to begin picking up here are you seeing any changes in purchasing pattern from any trends?

Nick Howley – Chairman of the Board, Chief Executive Officer

I honestly can’t say we have. I also am getting a little resistant to predict this the only thing I can say with certainty is every time I tried it it was wrong. By the way we are on a little on the upside thank God but I can’t say its mixed. If you look across our operating units it’s mixed.

Michael Ciarmoli – KeyBanc

Okay.

Nick Howley – Chairman of the Board, Chief Executive Officer

I don’t know that I can give you a clear pattern or region for that other than in the parashoot business we know we had some big international orders.

Michael Ciarmoli – KeyBanc

Okay. That’s fair & last one. I don’t know if you have color on this but now that the 350 has been delivered any kind of change in the view there on initial provisioning. I know there probably are not too many airlines getting that platform this year but any color on that?

Nick Howley – Chairman of the Board, Chief Executive Officer

Yes, Michael we are not figuring on any. Could it be yes maybe.

Michael Ciarmoli – KeyBanc

Okay

Nick Howley – Chairman of the Board, Chief Executive Officer

But we are not figuring it in our guidance or numbers we are not figuring

Michael Ciarmoli – KeyBanc

Okay. Perfect. That’s all I had. Thanks, guys.

Operator

Thank you. The next question comes from Joseph Nadol – JP Morgan, Go ahead Joe.

Joseph Nadol – JP Morgan

Hi Good morning

Nick Howley – Chairman of the Board, Chief Executive Officer

Good morning Joe

Joseph Nadol – JP Morgan

I had a question. which was caused you to hold back in the quarter?

Nick Howley – Chairman of the Board, Chief Executive Officer

What caused it I don’t know anything particular we sort of bought up what we planned to buy up & we reauthorize more but we just decided not to do it. I don’t know that I would not take too much out of that but we bought quite about 900,000 shares. Yes it was more unusual if we bought them we did not buy so we sort of bought up about what we had in mind to buy & we stopped.

Operator

Liza Sabol – Manager of Investor Relations

Okay. If there are no further questions we thank you all for calling in today & look for our 10Q to be filed on Friday as mentioned. Thank you.

Operator

Thank you. Thank you for your participation in today’s conference. This concludes the presentation, you may now disconnect. Have a good day.

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