Hong Kong Aircraft Engineering Co (HAECO) reported a 13.3% fall in revenue during 1H2009, and a 46.3% drop in operating profit. According to HAECO, the result “reflects increasingly difficult trading conditions for HAECO’s businesses as airlines cut capacity and expenditure in response to falling demand”.
HAECO declared an interim dividend of HKD0.50 per share, compared to HKD0.93 per share in 1H2008. HAECO expects business activity in 2H2009 to be substantially weaker, with airlines continuing to reduce services and expenditure, resulting in “significant unsold capacity for the first time in several years”. Any sustained recovery in HAECO's business “will depend upon a recovery in global aviation generally”. HAECO shares were up 3.0% in trading on Monday.
Menzies Group traded up 13.5% yesterday, on items unrelated to its aviation business. Its newspaper and magazine wholesaling division securing a number of significant publisher contract gains, to be phased in over the next 18 months. It also paid GBP500,000 for assets of Dawson News, which is in administration.
Selected Aviation suppliers’ daily share price movements (% change): 04-Aug-09