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.

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

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