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LMI Aerospace Inc. Message Board

  • cpa38 cpa38 Sep 4, 2013 9:15 AM Flag

    The TGI nightmare

    Reading between the lines from the conference call ... LMIA is crashing and burning because of turmoil in the SPR organization. SPR was to award LMIA (more specifically - Valent) a big contract ... it never materialized. In the conference call, the excuse LMIA gave was that SPR was going through a massive re-org and rethinking of their strategic direction. We also know that SPR has announced a desire to sell many of their facilities, primarily in Oklahoma. It is my understanding that the SPR Oklahoma facilities do work primarily for Gulfstream? Putting two and two together ... SPR will not award contracts for work to feed those facilities until they finalize the sale.

    Here's the biggest problem ... what if TGI is the buyer of the SPR facilities? ... which is likely. If that happens, there is no way LMIA gets any work from TGI. The bigger question? How much more work will LMIA lose if TGI buys the businesses that SPR is selling? And, how hard is it going to be for LMIA to replace all this lost business?

    Am I on the right track? If so, then this Valent acquisition by Ron has to be one of the stupidest moves I've ever seen a CEO make. Ron is old. He needs to retire. And he is going to wind up taking his company down the sewer just as he reaches his golden years. What a darn shame.

    Anyone have any insight on this issue?

 
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