Demand for new commercial aircraft is driven by many factors, including general economic conditions, passenger and cargo air traffic, airline profitability, the introduction of new aircraft models, and the availability and profile of used aircraft. The primary manufacturers of large commercial aircraft are Airbus and Boeing, both of which have projected that the number of commercial and freighter aircraft in service will more than double from 2006 to 2026.

Demand for new military aircraft in the U.S. is driven by the national defense budget, procurement funding decisions, geopolitical conditions worldwide and current operational use of the existing fleet. In February 2008, President Bush proposed a $183.8 billion Fiscal Year (FY) 2009 procurement defense budget, which represents an increase of approximately 17% from the FY 2007 procurement defense budget, not including emergency supplemental appropriations.

The business jet market includes personal, business jet aircraft with a worldwide fleet today exceeding 14,000 aircraft. There are currently more than 40 different models of business jets in production or development, ranging from Very Light Jets (VLJ) seating four passengers to trans-continental business jets that carry up to 19 passengers.

The U.S. Air Force also operates a fleet of business jet aircraft for use by the executive and legislative branches of government as well as the U.S. joint command leadership. In addition, many foreign governments provide business jet aircraft to high-ranking officials.

Demand for new business jet aircraft is driven by long-term economic expansion, corporate profitability, the increasing inconvenience of commercial airline travel, growing international acceptance and demand for business jet travel, increased fractional ownership and the introduction of new aircraft models. 2007 was a record year for business jet shipment and billings. According to the General Aviation Manufacturers Association, business jet deliveries increased 28% to 1,138 in 2007 from 886 in 2006.

- fuselage sections (including upper and lower ramp assemblies, skin panels, aft sections, and pressure bulkheads);

- complete integrated fuselage barrels;

- wings and wing assemblies (including skin panels, spars, and leading edges);

- empennages (tail assemblies, including horizontal and vertical stabilizers, horizontal and vertical leading edge assemblies, elevators and rudders);

- nacelles and nacelle components (the structures around engines, including fan cowls, inlet cowls, pylons and exhaust nozzles);

- rotorcraft cabins and substructures;

- detail parts (metallic and composite); and

- control surfaces (including flaps, ailerons, rudders, spoilers and elevators).

The Company produces a wide range of commercial aircraft products and participates in a number of major commercial programs for a variety of customers.

The Company is one of the largest independent manufacturers of aerostructures for Boeing. The Company has more than 40 years of commercial aircraft experience with Boeing, and it has maintained a formal strategic alliance with Boeing since 1994.

The Company is also one of the largest U.S. manufacturers of aerostructures for Airbus and has almost 20 years of commercial aircraft experience with the various Airbus entities.

The Company produces a broad array of products for military organizations both in the United States and around the world. In the United States, the Company provides aerostructures for a variety of military platforms, including transport, rotorcraft and unmanned aircraft utilized by all four branches of the U.S. military.

Cost of sales was 77% of revenue for each of the three month periods ended March 30, 2008 and April 1, 2007.

Selling, general and administrative expenses remained relatively consistent during each of the three month periods ended March 30, 2008 and April 1, 2007.

Operating income for the three months ended March 30, 2008 was $44.8 million, compared to operating income of $34.2 million for the same period in 2007.

Interest expense, net for the three months ended March 30, 2008 was $15.7 million, an increase of $1.1 million compared with $14.6 million for the same period in the prior year.