EADS trades higher, European engine manufacturers post gains – Suppliers Share Wrap
With US markets closed for Labour Day, European and Asian suppliers shares traded generally higher on Monday.
Despite some claims of a US victory in the WTO ruling on alleged European subsidies to Airbus, EADS shares traded up 2.4% on Monday. Underlying the investor confidence are statements by European trade representatives that the WTO ruling is more mixed than some US sources are revealing and that a full outcome of the subsidies dispute is dependent on the EU’s countersuit against the US.
Meanwhile, Rolls-Royce traded up 2.8%, as the engine manufacturer’s order book continues to swell in defiance of the global financial crisis. At the company’s half-year results presentation, CEO, Sir John Rose, highlighted Rolls-Royce’s resilience and voiced his expectation that revenue would continue to grow, while underlying profit would be broadly similar to 2008 levels.
German engine manufacturer, MTU Aero Engines, continues to expand it reach, recently signing an MoU with PAS Technologies to jointly pursue business opportunities in North and South America. The stock gained 3.6% yesterday, and is up 45% this year to date, despite having retreated slightly from a yearly high in late August.
Selected Aviation suppliers’ daily share price movements (% change): 07-Sep-09