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

Operator

Thank you. The next question comes from the line of Robert Spingarn from Credit Suisse. Go ahead.

Robert Spingarn – Credit Suisse

Hi good morning. This is actually Joe on for Rob. Thanks for taking the question. Nick I wanted to ask on [Inaudible] OE & recognizing it is a small part of commercial OE but what’s driving that big uptick in [Inaudible]OE, are there any particular platforms where you are seeing that strength?

Nick Howley – Chairman of the Board, Chief Executive Officer

First of all it is pretty broadly distributed across the platforms. I would not draw much from that other than it is just timing. You know as everybody knows the bigger more expensive ones are doing a little better than the lower priced ones & we are reasonably represented in that but I don’t mean to imply anything as far as the production rate forecast for business just OEM. I think it is just timing just when the shipments happen to fall.

Robert Spingarn -Credit Suisse

Okay. Got it. That’s very helpful. Thank you. I will jump back in the que.

Operator

Thank you. The next question comes from the line of Noah Poponak from Goldman Sachs. Go ahead Noah.

Noah Poponak – Goldman Sachs

Hi Good morning everyone.

Nick Howley – Chairman of the Board, Chief Executive Officer

Good morning.

Noah Poponak – Goldman Sachs

I wondered if you could maybe help us out with how aftermarket averages something greater than 10% the rest of the year to get to your full year guidance just because the quarter at 5% and it seemed like end market conditions were reasonably strong in the quarter. I know you pointed out the distributor item but even if I adjust for that.

Nick Howley – Chairman of the Board, Chief Executive Officer

Yes. That’s not a lot

Noah Poponak – Goldman Sachs

Not a lott. So help us out with what changes in that growth rate through the rest of the year?

Nick Howley – Chairman of the Board, Chief Executive Officer

I believe Noah, that is a leading question. I believe to make it through the year we will have to see pickup in the back half of the year.

Noah Poponak – Goldman Sachs

So what changes in the actual end market because the [Inaudible] get more difficult. It doesn’t seem like traffic would accelerate. It seems like you would almost have to be counting on airline inventory restocking or some deferred maintenance opening up or something else [Inaudible] to the company.