GKN Aerospace shares took a major hit on Wednesday, following BofA Merrill Lynch Global Research downgrading its recommendation on GKN Plc, the company’s parent, to “underperform".
The aerospace business reported a 1Q2010 pre-tax profit of GBP71 million, compared to a GBP29 million loss for the same period in 2009. The company expects results to improve through the year, as a result of accelerating production by major aircraft manufacturers.
The outlook for the company’s automotive and off-highway units is not as strong, with forecasts of tough conditions in the European auto market and its ‘China Driveline’ business also expected to report ‘negative news’.
EADS and B/E Aerospace both lost ground, down 3.5% and 3.1% respectively.
Selected Aviation suppliers’ daily share price movements (% change): 19-May-2010