Boeing’s downward run resumed on Friday, with the US manufacturer’s share price losing another 1.5%. It was a horror week for the company, with the announcement of another delay to its B787 test flight and Qantas’ cancellation of 15 B787s, as well as a four-year deferment of another 15.
To rub salt into the wound, Jetstar stated it would continue with expansion plans despite the B787 decision, and is reportedly considering ordering additional A330s to support its future international expansion.
Airbus' parent EADS share price was up 3.5% on Friday. Over the weekend, the company denied reports that it plans to sell any of its 46% stake in French military planemaker, Dassault Avation. EADS’ A400M aircraft programme, controlled by Airbus Military, took another hit on Friday, with the UK Defence Ministry indicating that it was not willing to pay for cost overruns to the progamme, which is now subject to contractual renegotiations.
CAE, the Montreal-based simulator manufacturer, was up 5.5% on Friday. The Canadian company revealed a major broadening of strategy recently, announcing on 21-Jun-2009 that it was investing CAD274 million (USD237 million) in a new R&D programme over the next seven years. The programme will see the company diversify its operations into healthcare, heavy equipment, mining and energy, with investment assistance from the Quebec Government.
The Canadian aerospace industry is headed for a better than anticipated 2009, with the Canadian Conference Board forecasting a full year “modest” profit of USD540 million, slightly better than the USD513 million reported last year. Strong order backlogs have propped up the sector, which is expected to cut output somewhat over the next 24 months, due to declining demand for business aircraft. Forecast profit margins are a slim 3%, although the industry has been less affected by the recession than other sectors.
Menzies continued to move upwards (+3.5%) after it released a stronger full year trading outlook last week.
Selected Aviation suppliers’ daily share price movements (% change): 26-Jun-09