Hampson prospers as aerospace flies

In an update on current trading, the company said demand for new commercial aircraft remained at an all time high. February 2008 had seen a further 253 orders taken by Boeing and Airbus for large commercial jets, taking the total for the first two months of the year to 556. On this basis, the combined backlog for new large commercial aircraft at the end of the first quarter of this calendar year is expected to set a new quarterly record, as well as represent the 15th consecutive quarterly increase. Against this background, trading in Hampson’s aerospace division – which provides 85% of the group’s business - remained, with both volume and efficiency-driven improvements continuing to benefit results, in line with expectations. Demand in the commercial and military aerospace market is expected to continue to be robust for the foreseeable future, Hampson said. The record global commercial aerospace backlog, combined with the increasing use of carbon composite materials in airframe and aero-engine manufacture, meant the Group’s aerospace businesses was very well positioned to continue to generate attractive growth. In particular, demand for large tooling systems for composite aerostructures is expected to continue to increase markedly over the next five years as a result of requirements for initial and production rate tooling on the Airbus A350XWB and other new and derivative commercial and military aerospace programmes. Following major operational improvements including the commissioning of new equipment in the Group’s Skelmersdale, UK facility, profitability was restored in the second half in the Automotive Turbocharger division. In particular, previously reported improvements in results reported had been sustained throughout the second half. The division has also won two major contracts for the supply of precision shaft and turbine wheel assemblies that are expected to be worth over £19 million in the coming year.