11 October 2007 18:38 [Source: ICIS news]
HOUSTON (ICIS news)--US carbon-fibre producer Cytec Industries should see little effect from Boeing's six-month delay of the delivery of its 787 Dreamliner passenger airplane, according to a research note released on Thursday.
Boeing moved the delivery date to November or December 2008 from May, according to the US airplane maker.
For every 787 airplane produced, Cytec supplies $1m (€710,000) in carbon fibre and adhesives, according to a research note by Deutsche Bank. As such, Cytec's earnings/share is affected 4 cents for every 10 airplanes produced.
Although Boeing has delayed the deliveries of the 787, it has not changed its 2008 production schedule, which is estimated at 35-40 planes.
In addition, Boeing had pledged to remunerate suppliers that make timely deliveries, Deutsche Bank said.
As a result, Deutsche Bank is maintaining its earnings/share estimate of $4.25.
Laurence Alexander, an analyst with Jefferies & Co., also said Cytec should experience little effect from the delay.
"Importantly, while deliveries have been delayed, raw material procurement will likely remain on schedule, rather than precipitate snarls in the supply chain," Alexander wrote in a research note.
A Cytec spokeswoman was not immediately available for comment on Thursday.($1.00 = €0.71)
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