Oil price threat sends EADS shares down

9th August 2004, Comments 0 comments

PARIS, Aug 9 (AFP) - Shares in European Aeronautic Defence and Space Company plunged Monday in mid-afternoon trade, pressured by a strong euro and fears that the company may see declining orders for new aircraft due to high fuel prices, dealers said.

PARIS, Aug 9 (AFP) - Shares in European Aeronautic Defence and Space Company plunged Monday in mid-afternoon trade, pressured by a strong euro and fears that the company may see declining orders for new aircraft due to high fuel prices, dealers said.  

EADS shares were trading down 3.59 percent at EUR 20.68, off a low of EUR 20.42, while the CAC-40 index was down 33.69 points at 3,494.95, reaching a new year low.  

"There's maybe some threat (from fuel prices). Airlines in the US are more concerned than the Europeans, and if the price doesn't go down, of course there will be a problem," said one Paris-based trader.  

"But it's too soon to start worrying. The order book by nature is a very long-term thing and we're still pretty optimistic on orders," he said.  

The trader also noted a "sharp drop" in the dollar since Friday, when a weak US jobs report reined in optimism for the pace of US economic recovery.  

"The stock is also pressured by the rise of the euro, which is negative for EADS," he said   The euro was at USD 1.2258 in mid-afternoon trade, compared with USD 1.2051 shortly before the data was released last Friday.  

Selling spilled into other aerospace and airlines stocks, with Snecma down EUR 0.20 at EUR 15.74, Thales falling EUR 0.69 to EUR 26.91 and Groupe Air France declining EUR 0.54 to EUR 11.30.  

Further weighing on the sector was British Airways' announcement earlier that it was raising the fuel surcharge on its long-haul flights due to the recent surge in oil prices, dealers said.

 

© AFP

 

Subject: French news

 

 

 

 

 

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