GenCorp projects double-digit revenue growth for 2007

By Jennifer Lanning Drey

Portland, Ore., June 12 - GenCorp Inc. expects to see double-digit revenue growth in 2007, with revenues from its Aerojet business approaching $700 million, company executives said Tuesday during the JPMorgan Basics & Industrials Conference in New York.

"We see continuing expansion in the three markets we address, and we expect to see priority funding from the government as time goes on," Terry Hall, GenCorp's chief executive officer, said during the conference.

GenCorp believes it is well positioned in growth sectors of the defense and space industries, and the company's Aerojet business has seen large-scale growth due to higher-than-expected governmental spending this year on missile defense, Hall said.

He added that the company believes the increased level of spending will continue.

Additionally, GenCorp is working to drive long-term value creation by unlocking value held in its California real estate, Hall said. The company has 6,400 acres that are currently being worked through entitlement processes in the Sacramento area.

At Feb. 28, GenCorp had approximately $93.9 million in cash and cash equivalents, $19.8 million of which was restricted, according to its most recent 10-Q filing made with the Securities and Exchange Commission.

Total long-term debt was roughly $465 million on the same date, according to GenCorp chief financial officer Yasmin Seyal.

GenCorp is a Sacramento, Calif.-based manufacturer of aerospace and defense products and systems with a real estate segment.

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