Wall Street Transcript Interview with Peter J. Gundermann, President and CEO of Astronics Corporation (ATRO)

Wall Street Transcript

67 WALL STREET, New York - May 24, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Commercial Aviation and Energy Expenditures - Industrial Restructuring - Emerging Markets Penetration - Heightened M&A Activity - Defense Budget Uncertainty - Capital Equipment Technology Investing

Companies include: Astronics Corp. (ATRO) and many more.

In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, the President and CEO of Astronics Corporation (ATRO) discusses company strategy and the outlook for this vital industry:

TWST: Do any particular trends stand out for you that you are seeing among your customers, whether it be overall demand, need for new product development, etc.?

Mr. Gundermann: There are a number of trends, but by far the biggest one driving our results is the trend whereby people are carrying increased numbers of personal electronic devices - iPhones, tablet computers, full-up personal computers, portables - onto airplanes, and they want to use them when in flight, and they want to use them in part to connect to the Internet.

There is WiFi onboard, that's another big trend. So whereas at one point in the not too distant past, people might have had one personal electronic device, today they are increasingly carrying two, three or four, and whereas before it was kind of a luxury to have such a device, now it's almost a necessity, depending on your line of work. People need and want to be on the Internet while they are on their flight, so our in-seat power product enables that combination of increased numbers of personal electronic devices and WiFi. This trend is definitely propelling our results into pretty good places.

TWST: Is that your Empower product? I believe you've had a few recent announcements regarding that.

Mr. Gundermann: Yes, our trade name is Empower. We've announced some agreements, primarily with Panasonic, our biggest customer. Panasonic is one of the leading in-flight entertainment providers to the aerospace industry, and they are a large customer of ours. But we work with 150-some airlines around the world. We work directly with the airframe manufacturers, Boeing and Airbus, and we work with other IFE suppliers too.

And one of the realities of this part of the aerospace industry is that airlines ultimately make the decisions in terms of whether to use our product or not. Airlines are, at the end of the day, retail-oriented organizations, and are very reluctant to let us issue any kind of press release about any activity involving them whatsoever. So even though it's our biggest product line and even though we have pretty substantial growth over the last few years, we can't ...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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