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Aerocast Inc. (A:CNSX) operates a high-growth sand-casting foundry that produces complex aluminum and magnesium castings primarily for the aerospace industry. Despite its relatively recent entry into the industry, Aerocast’s customers already include some of the world’s largest aerospace contractors with the likes of Honeywell Aerospace, Hamilton Sundstrand, Sikorsky Aircraft and Shimadzu Precision Instruments. These contractors manufacture components such as automatic transmission units, fuel pumps, generator housings, and engines for aircraft manufacturers such as Airbus and Boeing.
Since March 2008, Aerocast has received purchase orders for tooling equipment and castings totaling in excess of $2.5 million. Furthermore, these fulfilled orders are expected to generate ongoing castings sales in excess of $2 million annually. The company currently has over 25 different casting parts in production and Aerocast is working to increase its casting parts and quantities to satisfy customer demand. Present industry demand is expected to lead to a continued increase in year-over-year sales for Aerocast which should lead to short-term positive cash flow and EBITDA as production thresholds are met.
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