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 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