Operating income of the Flight Support Group was $25.4 million in the fourth quarter of fiscal 2012 compared to $26.6 million in the fourth quarter of fiscal 2011.  The slight decrease in operating income is primarily attributed to the previously mentioned normalization of demand within our specialty product lines.  Operating income of the Flight Support Group increased 9% to a record $103.9 million for the fiscal year ended October 31, 2012, up from $95.0 million for the fiscal year ended October 31, 2011.  The increase in operating income for the fiscal year ended October 31, 2012 principally reflects the previously mentioned increased sales of higher margin products within our aftermarket replacement parts and repair and overhaul services product lines. 

The Flight Support Group's operating margin was 17.0% in the fourth quarter of fiscal 2012 compared to 18.4% in the fourth quarter of fiscal 2011.  The decrease in operating margin principally reflects the dilutive impact of inventory purchase accounting adjustments for recent acquisitions and certain year-end valuation adjustments.  The Flight Support Group's operating margin improved to 18.2% for the fiscal year ended October 31, 2012, up from 17.6% for the fiscal year ended October 31, 2011 mostly resulting from increased sales volumes of certain higher margin products.

With respect to fiscal 2013, we currently estimate growth in full year net sales consistent with the aforementioned consolidated estimates and full year Flight Support Group operating margins that approximate those in fiscal 2012."

Electronic Technologies Group

Victor H. Mendelson, HEICO's Co-President and President of HEICO's Electronic Technologies Group, commented on the Electronic Technologies Group's fourth quarter results stating, "Our record quarterly highs in net sales and operating income are driven by owning profitable, well-managed businesses.  In the quarter, we were propelled by acquired businesses and continued organic growth.

Net sales of the Electronic Technologies Group increased 45% to a record $94.4 million in the fourth quarter of fiscal 2012, up from $65.3 million in the fourth quarter of fiscal 2011.  The net sales increase is principally attributed to additional net sales of $21.6 million contributed from acquisitions and organic growth of approximately 11%.  The organic growth in the fourth quarter of fiscal 2012 mostly reflects an increase in demand and market penetration for certain of our space, defense, aerospace and electronic products.  Net sales of the Electronic Technologies Group increased 46% to a record $331.6 million for the fiscal year ended October 31, 2012, up from $227.8 million for the fiscal year ended October 31, 2011.  The net sales increase for the fiscal year ended October 31, 2012 is largely attributed to additional net sales of $87.4 million contributed from acquisitions and organic growth of approximately 7%.  The organic growth for the fiscal year ended October 31, 2012 was derived mainly from increased demand and market penetration for certain of our defense, space, electronic, aerospace and medical products.  Our organic growth in the Electronic Technologies Group over the past two fiscal years has now averaged approximately 8%.

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