UTC optimistic after strong second quarter
Outlook United Technologies has raised its outlook for 2007 as a whole after posting a 4% increase in net income to $1.15 billion for the second quarter. Revenues were up 13% at $13.9 billion for the parent company of Hamilton Sundstrand, Pratt & Whitney and Sikorsky. UTC is now forecasting revenues of $53 billion for 2007, compared with its earlier prediction of $51 billion.
Xian aircraft's listed arm to raise funds
Offering Publicly traded Chinese aircraft manufacturer Xian Aircraft International plans to raise as much as 6.06 billion yuan ($800 million) by selling shares to its state-owned parent and other investors. The company says it will sell up to 660 million shares for 9.18 yuan each to Xian Aircraft and other investors. It adds that 3.07 billion yuan will be used to buy assets from its parent and to pay for some projects.
DVB takes share in engine asset management
Investment Germany's DVB Bank has acquired a majority shareholding in Wales-based engine asset management company TES Aviation as part of its plan to build an aviation investment franchise. TES, which offers engine management consultancy services, engine disassembly, part-out and materials procurement, says its new shareholders will provide capital to fuel and accelerate growth.
Airbase purchase boosts cabin expertise
Acquisition Airbase Interiors is expanding with the acquisition of Flight Support Group, which includes Flight Support, Coventry Handling and Manchester Handling. The newly enlarged company's annual turnover will top £12 million ($24.6 million) and it will employ 350 staff. Regrouped, the company will be responsible for ground handling and cabin interior maintenance services for UK airlines. "Together we will be in a unique position to offer enhanced services to the customers of both Airbase and FSL and grow the business together," says the group.
American airlines profits hit by weather
Results American Airlines parent AMR increased net profits by 9% to $317 million in the second quarter of the year despite severe weather disruptions that wiped nearly $50 million off its revenues. Total operating revenues for the three months ending 30 June 2007 slipped by 1.6% to $5.9 billion, in part reflecting the $50 million hit. But operating costs fell by the same percentage to $5.4 billion. Chairman and chief executive Gerard Arpey (pictured) says the company overcame "exceptional weather challenges and historically high fuel prices" to earn its fifth consecutive quarterly profit and its largest quarterly net profit since the launch of its turnaround plan over four years ago. However, he sounds a note of caution about the airline's outlook, saying: "We must remain mindful that painfully high fuel prices and continuing intense competition present formidable challenges for the remainder of the year and beyond."
Continental boosts net income
Earnings Continental Airlines saw its net income rise by 13% in the second quarter of the year, excluding an exception $7 million charge for pilot pension settlements. The US carrier says that it benefitted from strong international growth, particulary in the transatlantic market.
Source: Flight International
