LEASE RATES STABILISING: UBS

Widebody and narrowbody lease rates are stabilising compared with six months ago due to improving aviation market conditions, says UBS, with Boeing 737-700 rates up 3%. However, according to UBS, models it tracks are still down 15-20% from peak levels. Lease rates are seen as a leading indicator for new aircraft orders. UBS notes that during the previous two cycles lease rates improved a year before orders recovered.

MOOG UP ON GE ACQUISITION

The acquisition of General Electric's actuations systems business in Wolverhampton, UK, was a main driver of the 12% sales growth to $1.01 billion notched up in the half year to 3 April at control systems maker Moog. Pre-tax profits dipped 11% to $65 million.

BOEING STRIKE LIFTS SPIRIT

At Spirit AeroSystems, first quarter revenue was up 18% to $1.04 billion, thanks to the 2008 Boeing machinists' strike, which hit sales in the quarter last year. Operating performance and rising interest costs pushed net income down 11% to $56 million.

EUROFIGHTER SOARS AT FINMECCANICA

At Finmeccanica, aeronautics revenue rose 7% in the first quarter to €592 million ($767 million), while EBITA jumped 55% to €34 million, thanks largely to the Eurofighter programme. AgustaWestland division revenues climbed 11% to €837 million and EBITA edged up 1% to €75 million.

SEAT MAKERS BENEFIT FROM KOITO DEBACLE

Aircraft seat makers Zodiac and B/E Aerospace claim to be absorbing programmes that cannot be supported by embattled Japanese firm Koito Industries, which recently admitted to fabricating safety test results on as many as 150,000 seats worldwide. Recaro Aircraft Seating is also understood to be winning orders.

BUSINESS JETS, DEFENCE REVERSE EMBRAER LOSS

Embraer's first quarter sales dipped 14% to $1.15 billion as airliner deliveries dropped to 21 units from 32 a year ago. However, rising business jet and defence sales helped turn a $23.4 million first quarter 2009 loss into a profit of $35.3 million.

DUCOMMUN RECOVERS FROM ECLIPSE CHARGE

Los Angeles aerospace and defence engineering company Ducommun recorded a 6% fall in first quarter sales to $104.3 million, although net income increased nearly two-thirds to $4.2 million. The company had suffered a first quarter 2009 after-tax charge of $2.9 million related to the Eclipse Aviation bankruptcy.

LUFTHANSA POSTS HEAVY FIRST-QUARTER LOSS

German flag carrier Lufthansa made an operating loss of €330 million ($432 million) for the first quarter, a hefty decline on the €44 million deficit in 2009, although revenues rose by 16% to €5.8 billion. Lufthansa is attributing the performance to the first-time consolidation of BMI and Austrian Airlines and a pilots' strike.

BOEING CARVES OUT TANKER DIVISION

Boeing is to form an airlift and tankers division within its military aircraft business unit to assume responsibility for the C-17 Globemaster III and international and US tanker programmes.

Source: Flight International