29 jul: Brasiliansk bikini mode
03 aug: Indret med læder
02-08-2010 12:54:53

Defence suppliers shrug off spending cut worries

Relateret indhold

By Golnar Motevalli

LONDON (Reuters) - As the defence sector braces itself for government cuts, engineers such as Senior (Senior PLC 10P) and Ultra Electronics (Ultra Electronics Holdings PLC) say they can weather tighter spending as they focus on non-military sectors.

Senior and Ultra both released higher pretax profits on Monday, boosted in part by stronger sales in areas unrelated to military spending such as civil aircraft.

Senior, which also makes parts for planes and exhaust connectors for cars, said healthier commercial airplane sales at Boeing (Boeing Company (The)) and Airbus and cost cutting helped boost profits.

"The main driver is solidity in the aerospace division and much improved margins and the cost base (was) reduced last year," Chief Executive Mark Rollins told Reuters in a phone interview.

Ultra Electronics, which has a market value of 1.1 billion pounds, said it was focussed on providing products to meet demand for cyber security software and markets outside of Europe and the United States, such as Australia and the Middle East.

"It's a very tense region and I think that there's lots of things going on, there's lots of terrorism activities," Ultra Chief Executive Douglas Caster said.

Both companies said they would be eying acquisitions in the coming year. Rollins said Senior's improved debt position meant the company was looking forward to returning to growth.

Ultra's Caster said acquistions of 50 to 70 million pounds in size would be ideal for the company.

CYBER WARS

Ultra wants to cash in on stronger demand for cyber warfare systems such as encryption software. Last month the company signed a 76 million pound contract with Britain's Ministry of Defence (MOD) to provide cryptographic equipment.

"Where governments are trying to protect their information is the sorts of cryptographic methods we're supplying ... there's a very significant role that we have and there are other areas that we are prospecting," Caster said.

Both the Pentagon and MOD want to reduce defence spending to cope with ballooning national deficits, but spending on flagship military aircraft is not expected to decrease significantly.

"We're not too concerned in the near term. We're fortunate to be on the right programmes," Senior's Rollins said, adding that the build rates of the Black Hawk helicopter and Lockheed Martin's C-130 transport aircraft would not go down.

The weakest area for Senior was Flexonics, which accounts for 40 percent of the group's business and supplies components for cars and trucks such as exhaust connectors.

Rollins said he was confident the market would pick up.

Shares in Senior were up 4.3 percent to 133 pence a share at 11:40 a.m., the biggest gainer on the FTSE 350 Aerospace and Defence index.

Ultra's stock also rose, by 0.9 percent to 1,629 pence.

Analysts at Investec placed its forecast under review for Ultra's shares pending its meeting with the company, but said it expected a small increase in its full-year results forecast.

"We view Ultra as one of the highest quality companies in our universe with niche technologies and a strategy capable of sustaining growth through the cycle and an increasingly difficult outlook for defence," Investec said in a note.

(Reporting by Golnar Motevalli; Editing by Michael Shields)

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Nordea/CEO: Vigtigt med grundig analyse om hovedkvarter

20-07-2017 12:36:25
Det bliver til september, at Nordea afslører, om banken har tænkt sig at flytte sit hovedkvarter.Det fremgik af bankens regnskab torsdag morgen og blev uddybet senere over for Ritzau Finans.Udskydelsen skyldes dels nye initiativer, som banken skriver i regnskabet, og dels vigtigheden af at have yderligere tid til analyserne.- Vi tager beslutningen for de næste ti år. Vi har så småt fakta på plads,..

Aktier/middag: Storbankerne falder til bunds i C20 efter regnskaber

20-07-2017 11:33:47
Nordea og Danske Bank har ikke formået at stille investorerne tilfredse med deres respektive halvårsregnskaber torsdag, og derfor er de to aktier faldet til bunds og bidrager til at holde det danske eliteindeks tilbage.C20 Cap-indekset falder 0,1 pct. til 1176,18, mens der ellers er relativt godt humør på de europæiske børser. Risikoappetitten tager til efter fremgang på børserne i både Asien og U..

Danske/Jyske: Positive nedskrivninger lyser op i pænt regnskab - NY

20-07-2017 08:23:27
Det er især en sund udvikling i kundernes økonomi, der er et væsentligt element i et ganske fornuftigt regnskab fra Danske Bank.Der var dog på forhånd ventet pæne tal fra Danmarks største bank, og derfor bør aktien ikke rokke sig voldsomt i torsdagens handel på aktiemarkedet.Det vurderer aktieanalytiker Thomas Eskildsen fra Jyske Bank.- Det er et fint regnskab, og banken er inde i en ganske stabil..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Pandora-aktien tager stort hop efter rygstød fra investeringsbank - NY
2
Aktier/middag: Storbankerne falder til bunds i C20 efter regnskaber
3
Torsdagens aktier: Pandora funklede mens Nordea og Danske skuffede
4
Nordea Q2: Skuffer tungt og udskyder beslutning om hovedkvarter
5
Danske Bank Q2: Sundere problemkunder sikrede pænt plus i kvartalet

Relaterede aktiekurser

Senior PLC 10P 239,20 -0,3% Fald i aktiekurs
Boeing Company (The) 210,28 -0,3% Fald i aktiekurs
Ultra Electronics Holdin.. 2.034,00 -1,0% Fald i aktiekurs

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2017  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
20. juli 2017 22:39:15
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20170720.2 - EUROWEB2 - 2017-07-20 22:39:15 - 2017-07-20 22:39:15 - 1 - Website: OKAY