Goodrich up 3.2% on new acquisition, EADS reports successful Berlin Air Show
Goodrich Corporation announced it has acquired UK-based Crompton Technology Group, (CTG), a leading designer and manufacturer of advanced carbon fibre composite products for the aerospace, defense, advanced vehicle and clean energy markets. Although details of the acquisition were not disclosed, Goodrich confirmed that it closed the agreement on 09-Jun-2010.
Goodrich's share price was up 3.2% yesterday, continuing a mild three-day rally for the stock, which is down 0.6% for the year-to-date.
JP Morgan lowered its outlook for businesses providing maintenance and retro-fitting services to airlines, due to slower-than-expected economic growth and a weaker euro. JP Morgan commented, "clearly there is no consensus on how the current turmoil in the markets plays out, but we think it is reasonable to assume that the prospects for global growth are a bit lower than it appeared one to two months ago". The firm lowered its estimates for Rockwell Collins, Goodrich and United Technologies, adding that the market has been preparing for a second global recession and if that were to occur, it would reduce its estimates further.
Airbus busy in Berlin
Meanwhile, Airbus has reported an unusually busy Berlin Air Show. Apart from the blockbuster order signed with Emirates for another 32 A380s on the first day of the show, the European manufacturer signed MoUs covering 35 another aircraft at the show.
TAM Airlines signed an MoU for five A350-900s and 20 A320 family aircraft (comprising six A319s, seven A320s and seven A321s). Germania signed an MoU for A319s, becoming a new Airbus customer. Finnair signed an MoU for five A321s. These aircraft will come equipped with the new performance-enhancing "Sharklet" wingtip device option. The aircraft replace two A330s that the carrier had scheduled for delivery between 2012 and 2013.
EADS shares finished 4.4% higher. Embraer also traded strongly, up 4.6%. North American manufacturers were also buoyant, with Boeing gaining 3.5% and Bombardier 2%.
Selected Aviation suppliers' daily share price movements (% change): 10-Jun-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance