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HAECO shares down heavily

Shares in Hong Kong-based engineering and MRO provider HAECO dropped 7.7% in trading yesterday. The company is part owned by Swire Pacific and Cathay Pacific and has extensive interests in mainland China.

Earlier this week, Airbus announced that it has appointed a HAECO subsidiary, Taikoo (Xiamen) Aircraft Engineering Company Ltd (TAECO) as its first approved cabin-outfitter in Asia-Pacific. HAECO Group reported a profit of HKD701 million in 2010, 2% higher than in 2009.

HAECO describes its outlook for 2011 as "mixed". Demand for HAECO's heavy and line maintenance services in Hong Kong is expected to remain strong in 2011. HAESL is also expected to perform well, given a continue recovery in the airline industry. TAECO's base maintenance operations are expected to recover modestly. Its joint ventures in mainland China are expected to be adversely affected by continued start-up losses and by inflation and increased competition.

Selected Others daily share price movements (% change): 17-Mar-2011