FAA: General Electric Company (NYSE:GE) needs to repair 300 turbofan engines

General Electric Company (NYSE:GE) received an order from the Federal Aviation Administration to repair 300 of its turbofan engines as bad valves have caused two engine fires without hurting anyone.

The CF34-8C and CF34-8E engines are on Bombardier CRJ700/900 and Embraer 170/175 aircraft. The order has an effect on 15% of the fleet for these engines, which were built from 2001 to 2006, when the company selected alternative valve suppliers.

It was publicized by the Federal Register that this repair will cost about $7.55 million. The Federal Aviation Administration stated that the order is aimed at controlling the engine fuel leakage.

The error lie in the operability bleed valve, which takes air out of the engine’s compressor at the time of start-up. With the passage of time, FAA noticed that they infrequently leaked and twice caused an engine fire.

General Electric Company (NYSE:GE) hit 9.90% as their profit margin for the last twelve months and had an operating margin of 11.38%. Evaluating management effectiveness, return on equity was maintained at 11.56% in last twelve months. Return on assets for Intel was 2.01%. In the previous 52 weeks the price has traded between $16.30 – $23.18. The last session’s volume of 42.41 million shares competed with the average daily trading volume of 38.86 million shares.

Within the industry, Danaher Corporation (NYSE:DHR) had a 12.40% profit margin in the last twelve months and an operating margin at 17.12%. Return on equity for this company was 12.62% in the last twelve months. Return on assets was 7.18%. In the last year the stock has moved within a range of $45.06 – $57.15. The last session’s volume of 4.77 million shares competed with the average daily trading volume of 3.63 million shares.

SPX Corporation (NYSE:SPW) recorded a profit margin of 3.23% for the prior 12 months and an operating margin at 5.67%. Return on equity for this stock was 6.86% while return on assets was 2.34%.

Within the industry, Gardner Denver, Inc. (NYSE:GDI) had a 11.46% profit margin in the last twelve months and an operating margin at 16.18%. Return on equity for this company was 20.88% in the last twelve months. Return on assets was 11.89%.