BBA Aviation Interim Management Statement
15 November 2012
BBA Aviation plc, the leading global aviation support and aftermarket services provider, is today issuing its Interim Management Statement for the period from 1 July to 14 November 2012. The financial results set out below relate to the four months to 27 October 2012, unless otherwise stated.
As anticipated, BBA Aviation experienced further softness in its major markets in the third quarter, continuing the trend experienced in the first half of the year, although the rate of market decline generally moderated. North American B&GA movements were down 1% in the third quarter compared with 2011, marginally lower than the reduction seen in the first half. In Europe B&GA movements were down 4%. Commercial movements in North America declined by 2% in the third quarter, again lower than the decline seen in the first half.
Revenue in Flight Support was broadly unchanged compared with 2011. On an organic basis (excluding the impact of exchange rates, fuel prices, acquisitions and disposals) Flight Support revenues declined by 2%. Signature outperformed its markets and ASIG continues to deliver good contract gains including a recent win with American Airlines at seven locations, although in the period ASIG was adversely impacted by the timing of previously announced contract losses. The acquisition of PLH Aviation Services and Dryden Air Services has now completed and integration is progressing well with the businesses performing in line with expectations.
Revenue in Aftermarket Services and Systems declined by 7% against a strong comparator period, although for the year to date remains 6% higher than the prior year or 3% on an organic basis. This reduction reflected the timing of product delivery in Legacy and ERO together with the lag effect of the softening in B&GA markets since mid-2011. APPH delivered modest revenue growth. The impact of revenue reduction in Aftermarket Services and Systems was broadly offset by margin progression.
Overall, Group revenue declined by 3% compared to 2011.
More recently our Flight Support businesses have been affected by a prolonged period of disruption in commercial and B&GA movements in the northeast of the USA caused by Hurricane Sandy. Our employees responded well, our facilities were broadly untouched and reduced activity is expected to have only a limited impact on our full year performance.
The Group’s balance sheet remains strong and during the period a further $75m of cross currency swaps have matured with a cash cost of $6.5m. The Group remains focused on capital discipline, and continues to see plenty of opportunity to deploy its substantial investment capacity.
Commenting on the Interim Management Statement, Simon Pryce, BBA Aviation Group Chief Executive said:
“In soft and somewhat volatile markets, BBA Aviation continues to perform well, benefitting from its inherently flexible cost base and our focus on driving operational improvement. Notwithstanding the challenging near-term environment, the medium and long term growth prospects remain exciting, and we continue to expect to make progress in the second half of the year and beyond.”
BBA Aviation will announce its final results for the year ended 31 December 2012 on 1 March 2013.
BBA Aviation plc
Mark Hoad, Group Finance Director
020 7514 3999
David Allchurch / Christian Cowley
020 7353 4200
Notes to Editors
BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities. BBA Aviation’s Flight Support businesses (Signature Flight Support and ASIG) are focused on refuelling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services and Systems businesses (Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service, Barrett Turbine Engine Company, Ontic and APPH) are focused on the repair and overhaul of jet engines and the manufacture and service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com.
This interim management statement contains forward-looking statements which are based on current expectations and assumptions. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.