B/E Aerospace’s shares traded strongly on 24-Apr-09, gaining 8.9%, ahead of the presentation of its 1Q09 earnings results today (27-Apr-09). The company commented in Feb-2009 that the decline in the commercial and business aviation markets are negatively impacting its customer base, and “tough cash conservation measures implemented by our customers are clearly having an impact on the demand for our products.”
Amin J Khoury,Founder, Chairman & CEO, previously nonetheless forecast that the company’s 2009 results will be “in-line with its record 2008 result”, due to a decision to cut costs early and a realignment of its business mix towards non-discretionary consumables spending.
While 1Q09 earnings and cash flow are forecast to be 2009 revenues are expected to be particularly weak, the company still expects to be profitable in the quarter. Full year 2009 results are expected to be slightly weaker than 2008, although revenues are expected to improve over the full year.
Also up strongly on Friday was Brazil’s Embraer, with the aircraft manufacturer’s share price jumping 7.0%, on the buoyant Ibovespa index. The manufacturer unveiled a military freighter programme last week, signing a USD1.3 billion agreement with the Brazilian air force to develop the aircraft. Embraer also plans to offer the aircraft to the civilian market.
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Selected Aviation suppliers daily share price movements (% change): 24-Apr-09
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