NEW YORK (AP) -- A Jefferies analyst on Friday cut his forecast for business jet deliveries, saying he expects relatively flat demand for them this year.
Howard Rubel cited tough market conditions, including the liquidation of Beechcraft's former Hawker business jet business. He said he expects deliveries to rise about 6 percent from 2012 levels to 709, down from his previous prediction of 715.
Rubel predicted that Gulfstream will post the biggest increase this year with 33 deliveries, up 38 percent from 24 the year before. Meanwhile, Bombardier deliveries are expected to rise about 5 percent to 188.
He said that Hawker's bankruptcy affected pricing in the mid-size jet market. While that's temporary, Rubel said the liquidation will skew deliveries early in the year and keep prices from rising until the inventory disappears.
Rubel estimated that so far this year, about 60 business jets have been delivered, which is below normal. He added that geographically, European demand is "non-existent," while the rebound in U.S. demand seems to have lost momentum.
Here's how shares of some aerospace companies were trading Friday afternoon:
— Boeing Co., up 53 cents to $84.86.
— General Dynamics Corp., up 41 cents to $69.30.
— Lockheed Martin Corp., up 51 cents to $92.19.
— Northrop Grumman Corp., up 5 cents to $68.05.
— Raytheon Co., up 18 cents to $57.04.
— Alliant Techsystems Inc., down $1.08 to $69.77.
— Rockwell Collins Inc., down 17 cents to $62.86.
— Honeywell International Inc., up 44 cents to $75.03.
— L-3 Communications Holdings Inc., down 2 cents to $80.27.
— United Technologies Corp., up 97 cents to $93.40.
— Exelis Inc., down 9 cents to $10.82.
Meanwhile, the broader markets were up less than 1 percent.
- Investment & Company Information