AEROSPACE HOLDS ITS OWN FOR GKN
Sales and pre-tax profits at engineering group GKN for the nine months to the end of September were up 7% and 4% respectively, but fell short of expectations formed at the half-year mark as automotive demand has slumped. The company issues no quarterly report, but an interim management statement expects "significant further deterioration" in global demand to cut fourth quarter automotive profits by 70%. Aerospace markets remain "robust and in line with earlier expectations", with third quarter revenues up 10% and profits showing a strong improvement. The Boeing strike had little third quarter impact, but could shave up to 8% off fourth quarter revenue. For 2009, GKN expects civil aerospace demand to soften, but a decline of up to 10% would have only a small impact on profits. Defence markets should remain solid. In 2007, GKN Aerospace made £83 million ($137 million) on sales of £820 million.
A380, 787 DELAYS COST JOBS AT ITP
Airbus A380 and Boeing 787 delays have forced ITP, the engine subassemblies joint venture between Sener Aeronautica and Rolls-Royce, to slash 180,000 working hours from its 2009 schedule, representing 125 staff jobs and an as-yet undetermined impact on temporary workers. Adjustments are also being considered at its Precicast Bilbao and ITA tubing operations.
B/E SEES THIRD QUARTER PROFIT RISE TO $51.8M
Cabin interiors specialist B/E Aerospace saw its net income rise 16.5% to $51.8 million in the third quarter on sales up 37.3% year-over-year to $587.8 million, with strong growth in both commercial and business jet segments. However, B/E recently lowered its financial guidance for the remainder of this year and the following two years in light of deteriorating market conditions.
CONFLICT LEADS AIG BOSS TO QUIT BOEING BOARD
Edward Liddy, who last month was named chairman and chief executive of International Lease Finance parent company American International Group, has resigned from Boeing's board of directors amid concerns that he would no longer qualify as an independent director under New York Stock Exchange standards.
ROCKWELL COLLINS BUYS DISPLAYS PROVIDER SEOS
Rockwell Collins is to acquire for an undisclosed sum SEOS, a supplier of visual display solutions for commercial and military simulators. SEOS will operate under the Rockwell Collins name as part of its simulation and training solutions operation. SEOS has 150 employees and is headquartered in West Sussex, UK.
OPTRONICS JOINT VENTURE GOES AHEAD OF NORWAY
Saab and Simrad Optronics have formed a 51%-49% Norway-based joint venture, Vingtech Saab, to develop high-tech optronics. The venture was to be dependant on Norway buying Saab Gripen fighters, but the companies opted to go ahead regardless and forecast sales of NKr1 billion ($150 million) over the next five to 10 years, rising to NKr7 billion if Norway buys Gripens.
ACORN PLANTS MANAGEMENT AT NORCOT
Management at Manchester-based Norcot Engineering - Tim Harrison, Dave Howell and John Melia - have bought the company with backing from Acorn Capital Partners private equity. Harrison points to "significant growth opportunities" with customers Eclipse Aviation, Saab, Bombardier and B/E Aerospace.
Source: Flight International
