Shares of Air Industries Group jump after landing-gear order

Shares of Air Industries Group Inc. climbed more than 35 percent Tuesday after the aerospace manufacturer announced new defense subcontracts for landing gear components on the F-35 and F-15 fighter jets worth an estimated $22 million over three years.

The anticipated $22 million is at the "median spend," if half of the parts envisioned under the contract are military funded, Luciano "Lou" Melluzzo, president and chief executive of the Hauppauge company, said in an interview. The U.S. and other governments purchase the jets. 

Under the purchase agreement, Air Industries already has received fully funded orders for landing gear components worth $15.5 million. The name of the contractor being supplied with the parts was not disclosed.

Deliveries are scheduled to begin in the first quarter of 2019 and continue for three years.

Melluzzo said the contract marks the company's "first really big order" for the new-generation F-35 joint strike fighter.

"The F-35 is finally coming to life," he said.

Shares of Air Industries closed up 35.8 percent to $1.30 after the afternoon announcement.

Twelve months ago the stock was trading at $1.40.

Last week the company reported a third quarter net loss of $3.1 million on revenue of $11 million compared to a net loss of $2.9 million on revenue of $13.7 million in the 2017 period.

In October, Air Industries agreed in court to reverse course and allow the $9 million sale of a welding subsidiary to Edgewood-based CPI Aerostructures Inc.

A March agreement to sell Welding Metallurgy Inc. dissolved into a dispute in State Supreme Court in Manhattan before the court-ordered stipulation.

Melluzzo said that he seeks to focus on manufacturing and ignore the gyrations of the stock market.

"The market is the market," he said. "This news impacted the market positively. I try to focus on making parts."

. 

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.