Boeing still trailing Airbus stock gains; Aviation suppliers start week strongly - Share Wrap
Aviation suppliers continue to enjoy positive, if moderate, share gains, with most major airframe and engine manufacturers climbing well ahead of the general performance of major markets yesterday. Boeing was up 1.8%, as it recovered some of last week’s lost ground, while Airbus parent EADS climbed another 3.5%, as it dismissed rumors of a sale of its stake in Dassault and confirmed that it has no need for a capital increase to fund its A350 programme, which will compete with Boeing's beleaguered B787.
Embraer saw smaller gains than the larger manufacturers, up just 0.5%, as its sales outlook for the rest of the year continues to dim. Embraer is currently in negotiations with the Brazilian state-owned National Development Bank (BNDES,) to increase credit lines to customers, due to continued tightness in credit markets. 40 of 110 commercial aircraft to be delivered this year will receive financing assistance from BNDES.
Engine manufacturers were also positive, with Rolls-Royce rising 3.6% yesterday. The UK engine and aerospace company announced yesterday that it has purchased Aker Solutions’ 33% share in Odim, a technology and systems company focused on the offshore oil & gas, naval and power generation markets. MTU Aero Engines gained 1.9% yesterday.
Menzies continues to gain ground on its stronger trading outlook for the rest of the year. The stock was up 8.5% yesterday, after gaining more than 20% last week.
Selected Aviation suppliers’ daily share price movements (% change): 29-Jun-09