Airbus faces AF 447 report tomorrow, suppliers trade down – Share wrap
Shares in EADS wobbled yesterday, falling 3.6%, as the fall out from the crash of AF 447 continues. Meanwhile, other aviation suppliers have reported generally negative trading, as markets in Europe and North America slipped around 1-1.5%. Oil dropped just below USD70 per barrel, trading down by 2.3%.
Air Partner, which specialises in private aircraft charter and leasing, was down 5.8% yesterday, after Charles Stanley Securities stated it expects a 70% decline in the company’s 2009 operating profit. The Private Jets unit is expected to be most strongly affected, with revenue forecast to decline 35% in 2009 and 10% in 2010.
The negative forecast by Charles Stanley comes after Air Partner announced in early June that profits for the year ending Jul-2009 would be below expectations, due to weak demand. Air Partners’ revenue for the first six months of FY2008/2009 was down 2% year-on-year, while EBIT declined 17%.
CAE was down 0.6% yesterday. The company released its results for the full year ended 31-Mar-2009, reporting a net profit of CAD199.4 million, up 30.6% year-on-year. Earnings per share were up 31.7%.
Selected Aviation suppliers’ daily share price movements (% change): 30-Jun-09