Boeing up, Airbus down. HAECO profit slides 40% in 2009 – Suppliers Share Wrap
Boeing's shares were up 3.3% yesterday, as the withdrawal of EADS/Northrop Grumman from the US Air Force aerial tanker programme leaves it as the sole bidder. EADS shares fell 1.0% yesterday, despite its Airbus unit confirming an order for 25 A350 XWBs with United Airlines.
- Boeing becomes the sole bidder for the US Air Force aerial tanker program after EADS/Northrop Grumman's withdrawal.
- Boeing's shares rise by 3.3% following the news, while EADS shares fall by 1.0%.
- Hong Kong Aircraft Engineering Co (HAECO) reports a 40% decline in net profit for 2009 due to falling demand for its maintenance services.
- HAECO's revenue drops by 17% compared to 2008 levels.
- BBA Aviation's stock reaches an eight-week high, with a 4.1% gain in share price.
- The article provides selected daily share price movements for aviation suppliers.
Elsewhere in the aerospace supply chain, Hong Kong Aircraft Engineering Co (HAECO) shares slid 3.5% on Wednesday, following the company announcing a 40% fall in net profit in 2009 earlier in the week. Revenue dropped to HKD4,050 million, down 17% in 2008 levels. The company cited falling demand for its airframe heavy maintenance and line maintenance services. Net profit for the year was HKD688 million.
HAECO recommended a dividend of HKD1.50 per share, a third down on the HKD2.25 dividend it paid in 2008, when it reported a net profit of HKD1,140 million.
BBA Aviation gained 4.1%, pushing the stock to an eight-week high. BBA's share price has gained 11.5% in the past five days.
Selected Aviation suppliers' daily share price movements (% change): 10-Mar-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance