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TransDigm Declines as Executives Testify Before Congressional Committee

Tony Owusu

are falling 4% Wednesday as executives from the company testified before a Congressional committee to answer questions about the profits the company is making through its government contracts. A Pentagon-endorsed investigation discovered that the company has been booking profits exceeding 1,000% on some spare parts and equipment that is being paid for with taxpayer dollars. A House of Representatives committee memo reviewed by Reuters said that the Cleveland-based company has had "extreme" profit margins, with the worst examples showing profits between 1,385% and 4,436% on some products.