14th Nov 2013 11:18
LONDON (Alliance News) - BBA Aviation PLC Thursday said it still expects to make good progress in 2013, even though trading in the third quarter was slightly worse than it expected due to further weakness in Europe and it remains cautious with its near-term planning due to the volatility in its markets.
The airport support services and engine repair company said its markets had been mixed during the third quarter as volatility continued, although it said the fourth quarter had started well.
Its guidance remains unchanged from early August when it presented its half-year results, but at that time it had said it saw "clear upside for our businesses once we enter a period of greater business confidence and accelerated structural growth.? The latest update shows that period has yet to arrive.
BBA said movements in its North American business and general aviation operations had grown 3% in the third quarter, but the same operations in Europe saw a 1% decline in movements. The North American commercial operations also reported a 1% decline in movements.
Over the four months to October 26, revenues were up 2% on the year, driven by 2% growth in flight support and 1% growth in aftermarket services.
"Whilst month-on-month performance remains volatile we have seen an encouraging trend of growth, albeit modest, in the North American business and general aviation market in the last six months. European B&GA movements remain weak," Chief Executive Simon Pryce said in a statement.
"Whilst trading in the third quarter was marginally softer than expected, we have started the fourth quarter well and continue to anticipate making good progress in 2013," he added.
BBA Aviation shares were down 4.1% at 320.60 Thursday morning, one of the biggest fallers on the FTSE 250.
By Steve McGrath; [email protected]; @stevemcgrath1
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