Proactive Investors - Run By Investors For Investors

BBA Aviation still affected by slow down in US flying hours

Recent market data clearly implies a headwind to our expectation, it said
Global uncertainty is affecting flying hours

Aircraft ancillary services group BBA Aviation PLC (LON:BBA) is facing more uncertainty at its US business and general aviation arm.

“While we pointed to a softening of the US B&GA market at the half year, with expectations of the second half being broadly consistent with the first half, at around 2%, recent market data clearly implies a headwind to this expectation.”

READ: BBA Aviation expands with US$97mln acquisition of aerospace-focused aftermarket service provider, Firstmark

Total revenues in the ten months to October were 27% higher, while like-for-like sales grew by 2%.

Signature, the US B&GA business, improved revenues by 2.1%, which was much better than the market overall but it is facing growing pressures.

“The [B&GA] market continues to be impacted by global economic uncertainty which is impacting flying hours,“ said Mark Johnstone, chief executive.

Aftermarket services sales dropped by 4.4% due to the expected non-repeat of cyclical military orders in 2017.

Full year underlying operating profit to be broadly in line with expectations, BBA added.


View full BBA profile View Profile

BBA Aviation Timeline

Related Articles

container ship
October 16 2018
Xpediator Group is especially strong in eastern and central Europe
January 03 2019
In an update at the company’s annual meeting in November, investors were told lease income for the six months to the end of December will be in the order of US$58mln, up 39% year on year

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use