Aerovironment Flying Higher With Contract for ‘Raven’

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Despite the recent death of its renowned founder, things were looking up for Aerovironment Inc., which announced a double dose of good news last week.


The Monrovia unmanned-aircraft manufacturer announced that it won a $16.4 million Army contract on the same day it reported strong first quarter earnings.


The contract covers logistics related to the Raven, one of the company’s hand-launched unmanned aerial vehicles.


The company also reported net income of $3.8 million for the fiscal first quarter ended July 28, up 171 percent over the same period a year ago. Revenues were up 55 percent to $49.2 million. Both figures were ahead of Wall Street estimates.


“Our team did an outstanding job again this quarter,” said Tim Conver, the company’s new chairman and chief executive, who cited the Raven as one of the company’s strongest products.


Aerovironment designs unmanned aerial vehicles and quick-charge power systems. The company derives about 80 percent of its $173 million in annual revenue from the aerial vehicles, which are sold primarily to the military.


Conver took over as president and chief executive late last month after aviation pioneer and Aerovironment founder Paul MacCready retired due to health problems. MacCready, who designed the first human-powered aircraft, died in his home Aug. 28.



Farm Team

There’s been a bit of a shakeup atop Vernon frozen foods maker Overhill Farms Inc.


The company’s chief financial officer, John L. Steinbrun, stepped down from his post last week to become chief executive of a Southern California company outside the food industry. Steinbrun was also senior vice president and chief operating officer.


Tracy E. Quinn, who had served in several senior-level finance positions with Pittsburg, Penn.-based ketchup maker H.J. Heinz Co., will serve as interim chief financial officer while Overhill conducts a search for a permanent replacement. Quinn retired in 2005 after 21 years with Heinz.


“We believe Ms. Quinn will make a very significant contribution to Overhill Farms through her strong strategic and operational skills and experience as well as her financial acumen,” said Chief Executive James Rudis in a prepared statement.


The company said Quinn will also assist in the search for her replacement.


The company is in the midst of an aggressive expansion as it launches several new product lines and expands a manufacturing plant. As a result, the company last month reported a decline in its third-quarter earnings.



Bus Company Recognized

A local transportation company with a global reach has impressed some top government officials with its business model.


Woodland Hills-based Transnational Automotive Group Inc., a young company which has built its business supplying passenger transportation in developing African nations, has been selected as a finalist for the Department of State’s Award for Corporate Excellence.


The award was created in 1999 to recognize the global presence of U.S. companies. The company was recently chosen by the Cameroon government to run bus services in several of the West African nation’s largest cities.


Transnational is one of nine companies still in the running for the prestigious award, along with giants like Microsoft Corp. and General Motors Corp.



Space Race

The government hopes to return to the moon, but not without the help of some major aerospace companies.


The National Aeronautics and Space Administrators recently awarded a significant contract to a team of companies led by Chicago, Ill.-based Boeing Co. and including Los Angeles defense contractor Northrop Grumman Corp. to build the upper stage of the Ares rocket.


The $514 million contract, which could ultimately be worth about $1 billion, represents a major portion of NASA’s push to return astronauts to the moon by 2020.


The companies beat out a team led by Edina, Minn.-based aerospace supplier Alliant Techsystems Inc., which already has a contract to build the rocket’s lower boosters.


NASA is expected to begin awarding contracts to build a lunar lander in coming years.



Microturbine Contract

A Chatsworth microturbine manufacturer recently announced a deal to supply its systems to a global energy company.


Capstone Turbine Corp. said it received a $2.4 million order for microturbines designed to operate in high humidity climates. The order comes from an unnamed oil and gas company involved in production, distribution and refining of natural gas.


Microturbines are small turbine generators that can produce electricity. Last month, Capstone reported a 14 percent decline in first quarter revenue, which the company attributed to lower than expected sales in North America and Asia.



Staff reporter Richard Clough can be reached at

[email protected]

, or (323) 549-5225, ext. 251.

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