Components manufacturer Avcorp reported a net profit of $20 million for the fiscal year, following a $27 million award from Cessna to settle a dispute.
The dispute arose from Cessna's charge of unsatisfactory parts received from Avcorp. While Avcorp was signed to be the sole supplier of crucial parts for Cessna's business jet lineup, Cessna set up its own manufacturing line for the same parts and purchased others from other suppliers, citing poor performance from Avcorp.
An arbitration panel found Cessna liable for $27.3 million of lost revenues for Avcorp. The award was disputed by Cessna, but its concerns were overruled.
Avcorp cited renewed deliveries to Boeing and BAe as crucial to its profitability after Cessna's abrupt termination of its business relationship.