The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
Trump's tweet comes a day after Apple put out a press release describing the money it spends on U.S.-based suppliers and vendors.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
President Donald Trump held a call on Wednesday with the CEOs of three major U.S. banks, according to people with knowledge of the situation.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Scientists say the smoke plumes, filled with megatons of tiny, harmful particles, could travel to other areas of the world and cause serious respiratory problems for people.Weather & Natural Disastersread more
Some Weight Watchers loyalists applaud Kurbo by WW. But nutritionists worry Kurbo promotes an unhealthy relationship with food during an especially impressionable time.Health and Scienceread more
Benefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, writes John...Politicsread more
Epstein, 66, was found in his cell in Manhattan federal lockup Saturday morning and transferred to a nearby hospital, where he was subsequently pronounced dead.Politicsread more
Air travelers faced delays at U.S. airports on Friday afternoon after a computer issue snarled processing of international arrivals.Airlinesread more
WASHINGTON, May 15 (Reuters) - Executives for TransDigm Group Inc will testify before a Congressional committee on Wednesday after a Pentagon-endorsed investigation found the aircraft parts supplier made profits exceeding 1,000% on some spare parts and equipment.
TransDigm shares were down 3.2% in early trading as the broader market was flat. According to a House of Representatives committee memo seen by Reuters, TransDigm had "extreme" profit margins, and that "in five of the worst examples examined by the Committee, TransDigm made excess profits of between 1,385% and 4,436%."
Chief Executive Officer Kevin Stein and other company executives were scheduled to speak to the House Committee on Oversight and Reform.
The congressional memo said that in one of the examples the Department of Defense paid $1,443 for a nonvehicular clutch disk used in a C-135 transport aircraft that cost TransDigm just $32 to produce, giving TransDigm 4,436% in profit.
TransDigm was able to charge these exorbitant prices because it is the sole source provider for all these parts, the congressional memo said.
In his opening statement Stein said "TransDigm did nothing in contravention of the federal acquisition laws and regulations with respect to its pricing."
TransDigm has made several acquisitions in recent years to boost its share of the spare parts market.
After examining 113 Department of Defense contracts the Pentagon's inspector general recommended TransDigm repay $16.1 million in excess profits, the memo said.
TransDigm informed the Committee in a letter on May 7 that it "has not yet determined whether it will make a voluntary refund as recommended by the Department of Defense Office of Inspector General," the congressional memo said. (Reporting by Mike Stone in Washington D.C.; Editing by David Gregorio)