25 Nov 09. State-owned Israel Aerospace Industries (IAI) reported flat quarterly net profit on Wednesday despite a 23 percent drop in sales due to cost-saving measures and higher financial income.IAI, Israel’s largest defence contractor, posted an unchanged third-quarter net profit of $16m. Sales totalled $678m, down from $877m a year earlier, weighed down
by the crisis in the global civil aviation market. IAI sales to this market fell 50 percent. “The global economic crisis affected the company’s activity in the civil market,” IAI Chairman Yair Shamir said in a statement. “A certain recovery is apparent in the market, reflected in a growth of some 24 percent in civil sales compared to the second quarter.” IAI’s backlog grew to a record $8.1bn from $7.1bn at the end of
2008. It attributed the increase to orders from the defence sector.
“The company’s management is looking to the future and is investing resources in the development of new and innovative products using advanced technologies,” President and Chief Executive Itzhak Nissan said. “IAI is further looking into various business opportunities to penetrate the area of wind energy, which has technological synergy with IAI’s civil aviation activities,” he added. (Source: Reuters)
23 Nov 09. Hewlett-Packard Co. reported a 14% jump in quarterly profit, an indication that a big bet on technology services and cost-cutting has put the Silicon Valley giant in a strong position as the economy starts to recover. The fiscal-fourth-quarter results, which H-P had previewed, contrast sharply with a 54% drop in profit announced by rival Dell Inc. last week. Results for H-P’s personal-computer business showed the company has increased its market share, in part because H-P is stronger in consumer segments that have accounted for most PC growth recently. H-P’s net income rose 14% to $2.4bn on revenue of $30.8bn. Dow Jones’s Eric Savitz talks with WSJ’s Lee Hawkins about the results. Computer makers have been hurt by falling prices, which have held revenue down though PC demand has been improving. Gartner Inc., a market research firm, on Monday projected that global unit shipments will rise 2.8% this year; in September it had forecast a 2% decline. (Source: Google)
20 Nov 09. Chemring has placed $280m of loan notes with institutional investors, giving it renewed firepower for further acquisitions. David Price, chief executive, said half of the money would be used to pay for a recent acquisition, leaving about $140m for “general corporate purposes”.
18 Nov 09. Cobham was among the top performers on Wednesday as the FTSE 100 struggled for direction. The defence and aerospace group rose 2.7 per cent to 236¼p after Morgan Stanley played down fears about US budget cuts. In a survey of defence experts, a majority expected spending to continue rising over the next 18 months, said Morgan Stanley. The cost of
withdrawing troops from Iraq and Afghanistan was also likely to keep the budget elevated for longer than expected, it said. The broker forecast a “shift away from a war economy to domestic priorities” such as surveillance and homeland security – areas in which Cobham is a market leader. Cobham shares have trailed civil aerospace peers by 30 per cent this year, an underperformance the broker said was unjustified. It started coverage of the stock with an “outperform” rating and 300p price target. (Source: FT.com)
23 Nov 09. Mike Turner, the former chief executive of BAE Systems of the UK, has turned up as a key witness in France’s largest insider dealing case, in which 17 current and former executives of EADS and its Airbus subsidiary stand accused by the market regulator of illegally selling shares in the Franco-German aerospace group. France’s Financial Markets Authority on Monday launched the final phase of an inquiry, which has lasted almost three years, into the insider dealing allegations, prompted by a shock profit warning from EADS in June 2006 that sent the shares down