Tough time for US and UK manufacturers – Suppliers Share Wrap
US and UK Aerospace and defence manufacturers had a hard time on Tuesday, with Rockwell Collins, Honeywell and Goodrich all losing 1.8% by the close of trading. BAE Systems (-1.6%) and Raytheon (-1.7%) also lost ground, as did Pratt & Whitney (-1.3%).
The US has already announced defence cuts, while the UK announced yesterday it will slice 8% out of its defence budget.
Lockheed Martin share gained 0.8%, despite the company reporting a 28% decline in net profit (USD517 million) on a 6% increase in revenue. The company’s outlook is for 2011 sales growth at the “mid-single-digit” levels.
EADS shares were up 1.5%. The UK confirmed its commitment to the troubled A400M programme under the defence review.
Selected Original Equipment Manufacturers daily share price movements (% change): 19-Oct-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance
Selected Aviation Suppliers & Leasing daily share price movements (% change): 19-Oct-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance