Vector Aerospace Announces Second Quarter 2008 Results

    TORONTO, Aug. 5 /CNW/ - Vector Aerospace Corporation (Vector) (TSX: RNO)
today announces results for the quarter ended June 30, 2008.

                                        Second Quarter            Six Months
     (in millions of
     Canadian dollars):                 2008      2007       2008       2007
    Revenue from continuing
     operations                      $ 138.2    $ 88.8    $ 222.7    $ 171.9
    Net earnings from continuing
     operations before interest,
     income taxes and unusual        $  12.6    $  6.0    $  19.8    $  12.3
    Net earnings                     $   8.3    $  2.3    $  12.1    $   5.5

    Per Share:
      Weighted average number of
       common shares outstanding
        Basic                           37.7      37.5       37.6       37.4
        Diluted                         38.0      38.0       37.9       37.9
      Net earnings before interest,
       income taxes and
       unusual items
        Basic                        $  0.33    $ 0.16    $  0.53    $  0.33
        Diluted                      $  0.33    $ 0.16    $  0.53    $  0.32
      Net earnings
        Basic                        $  0.22    $ 0.06    $  0.32    $  0.15
        Diluted                      $  0.22    $ 0.06    $  0.32    $  0.15

    The interim consolidated financial statements and MD&A for the quarter 
ended March 31, 2008 are available on the Company's website, and on SEDAR,

    The Company generated consolidated revenue from operations of
$138.2 million for the second quarter of 2008, $49.4 million above the same
period last year. Earnings from operations, before interest, tax, and unusual
items, were $12.6 million for the second quarter of 2008, an increase
$6.6 million as compared to the same period last year. The increase in
earnings in the second quarter of 2008 was primarily a result of increased
revenues related to the fixed wing operations and the inclusion of earnings
for the quarter related to Vector Aerospace - Helicopters U.K. (the DARA
acquisition). Net earnings for the second quarter of 2008 were $8.3 million
($0.22 per share) compared to $2.3 million ($0.06per share) for the same
period last year.
    In commenting on the quarter's results, President and CEO Declan O'Shea
stated: "Our consolidated operating results were strong for Q2 2008. I was
very pleased with our results at Sigma and ATI in the quarter. As a result of
increased activity on the PW100 line and on the RSAF contract these divisions
produced very strong operating results. The first quarter of our U.K.
helicopter operations was in line with the prior year and our expectations for
the period. The balance of 2008 for our U.K. helicopter operations will be a
period of integration and implementation of profitability improvement measures
which should positively impact earnings beginning in 2009. On a consolidated
basis, the last half of 2008 (in aggregate) is anticipated to produce
operating results similar to the first half of the year (in aggregate). We
were pleased to have extended our PW100 and PT6 DOF agreements for a further
10 years and to be awarded a new DOF for certain variants of the PW307/308
engines for a term of 10 years from Pratt & Whitney Canada."

    Analyst Conference Call

    Vector Aerospace Corporation will hold a Q2 2008 conference call at
4:00 p.m. ET on Tuesday, August 5, 2008. The conference call will review
Vector's results for the quarter ended June 30, 2008. The scheduled speakers
for the Company on the conference call are: Declan O'Shea, President and Chief
Executive Officer and Randal Levine, Senior Vice President and Chief Financial
    Interested parties can access the conference call in the North American
by dialing 1-888-300-0053 and entering passcode 57621901. The international
dial-in number is (647) 427-3420. Please dial in approximately 5-10 minutes
prior to the 4:00 9.m. Eastern start time.
    A replay service will be available two hours following the conference
call until midnight on August 19, 2008. To access this recording, dial 
1-888-695-9456 or 1-402-220-0608 and enter passcode 57621901.

    Vector Aerospace Corporation is an independent provider of aviation
repair and overhaul services. Through facilities in Canada, the United States
and the United Kingdom, Vector provides services to commercial and military
customers for various types of gas turbine engines, components and helicopter
airframes. Principal operations include Atlantic Turbines, Vector Aerospace
Engine Services UK Limited (formerly Sigma Aerospace), Vector Aerospace
Helicopter Services (formerly ACROHELIPRO Global Services), Vector Aerospace
International Limited (rotary and component repair business of DARA acquired
from the Ministry of Defense in the United Kingdom) and Pathix ASP.

    Special Note Regarding Forward-Looking Statements

    Certain statements in this news release, which includes the attached
management's discussion and analysis of financial condition and results of
operations, are forward-looking statements or information, collectively
"forward-looking statements". The Company is hereby providing cautionary
statements identifying important factors that could cause the Company's actual
results to differ materially from those projected in forward-looking
statements made in this news release. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives, assumptions or
future events or performance (often, but not always, through the use of words
or phrases such as "will likely result," "are expected to", "will continue",
"is anticipated", "estimated", "intend", "plan", "projection", "could", "may",
"believes", "feel", "targeting", "look forward", "goals", "objective",
"outlook" and similar expressions) are not historical facts and may be
forward-looking and may involve estimates, assumptions and uncertainties which
could cause actual results or outcomes to differ materially from those
expressed in the forward-looking statements. Without limitation, information
regarding the expected revenue from the contract signed with the Royal Saudi
Air Force, the impacts on the aviation industry of the tensions and conflicts
in the Middle East, the impacts of possible acts of terrorism on the aviation
industry, timing of product delivery, availability of parts from original
equipment manufacturers ("OEMs") and others used in providing the Company's
services, U.S. and foreign government activities, volatility of the market for
the Company's services, worldwide political stability, factors that could
result in significant or prolonged disruption to commercial air travel
worldwide, domestic and international economic conditions, other political and
economic situations and uncertainties, changes in foreign currency exchange
rates, the impacts of changes in government priorities and spending on
military aviation activities related to the Company's services, the ability of
the Company to replace lost revenue of a customer significant to an operating
division, the ability of the Company to successfully implement production
efficiency changes, cost reductions and restructuring initiatives at various
locations throughout the Company and the possibility that such efforts will
not have as great an impact on the operating results of the Company as is
currently anticipated, is forward-looking information. Readers should also
refer to the Company's continuous disclosure materials filed with Canadian
Securities Regulatory Authorities for additional information with respect to
certainly of these risk factors, including the 2007 Annual Report and
Management's Discussion and Analysis (2007).
    Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no assurance that such
expectations will prove to have been correct. Important factors that could
cause actual results to differ materially from the Company's expectations
("Cautionary Statements"), including changes in general economic, market and
business conditions, fluctuations in the cost of borrowing, political and
economic development, the Company's ability to receive timely regulatory
approvals, competitive actions of other companies, including increased
competition from OEMs with their own in-house service providers, the
occurrence of unexpected events such as fires, equipment failures and other
similar events affecting the Company or other parties whose operation or
assets directly or indirectly affect the Company, and those risks set forth
under the heading "Risk Factors" below.
    All subsequent written and oral forward-looking statements attributable
to the Company or persons acting on behalf of the Company are expressly
qualified in their entirety by the Cautionary Statements. The forward-looking
information contained herein is current only as of the date of this document.
New factors emerge from time to time, and it is not possible for management to
predict all of such factors and to assess in advance the impact of each such
factor on the Company's business or the extent to which any factor or
combination of factors may cause actual results to differ materially from
those contained in any forward- looking statements. The Company disclaims any
intentions or obligation to update or revise any forward- looking statements
or comments as a result of any new information, future event or otherwise
unless such disclosure is required by law.

    Annual 2007 Consolidated Financial Statements and MD&A

    The Company's complete annual consolidated financial statements for the
year ended December 31, 2007 and notes thereto, together with management's
discussion and analysis of financial condition and results of operations
("MD&A") included in the Company's Annual Report for the year ended
December 31, 2007 (the "2007 Annual Report") were released on March 30, 2008.
The overview of financial condition and results of operations included in this
news release should be read in conjunction with the 2007 Annual Report which
is available on the Company's website and on SEDAR,

For further information:

For further information: Declan O'Shea, President & CEO, (416) 640-2121;
Randal L. Levine, Senior Vice-President and Chief Financial Officer, (416)

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