Zodiac Aerospace drops 4.1% as it reports lower profit – Suppliers Share Wrap


Zodiac Aerospace reported a 2.5% decrease in revenue and a 14.2% drop in net earnings for the 12 months to 31-Aug-2010. The company's shares dropped 4.1% yesterday. Zodiac's outlook for 2011 is for revenue growth in the region of 15% in 2010/2011, excluding new acquisitions.

  • Zodiac Aerospace reports a decrease in revenue and net earnings for the 12 months ending August 2010.
  • Zodiac Aerospace's outlook for 2011 predicts revenue growth of around 15%, excluding new acquisitions.
  • CEO of Zodiac Aerospace suggests foreign object damage as a possible cause of the fire on a Boeing B787 test aircraft.
  • Boeing's shares decline following the news of the fire incident.
  • Gleacher & Co maintains a "buy" rating on Boeing, expecting a delay of up to six months for the B787 program.
  • Share price movements of selected Original Equipment Manufacturers and Aviation Suppliers & Leasing companies are provided.

Zodiac Aerospace CEO Olivier Zarrouati commented that foreign object damage could possibly be the cause of a fire on a Boeing B787 test aircraft in early Nov-2010. If a foreign object was found to be the cause it would be "fairly reassuring" for suppliers, worried about the possibility of a seventh delay for the aircraft, which is nearly three years behind schedule.

Shares in Boeing were down 0.7% yesterday. Gleacher & Co reiterated its "buy" rating on Boeing, on the news that the fire was related to a component failure/installation issue with the electrical control panel. Gleacher & Co still expects a delay of up to six months to the programme, pushing certification into late 2Q2011 or early 3Q2011.

Selected Original Equipment Manufacturers daily share price movements (% change): 23-Nov-2010

Selected Aviation Suppliers & Leasing daily share price movements (% change): 23-Nov-2010

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More