(Adds analyst comment, details, background; updates share)
By Esha Vaish
March 5 British aircraft services provider BBA
Aviation Plc reported a full-year profit slightly below
estimates and said it would buy back shares for up to $125
BBA Aviation, which provides refuelling, de-icing, ground
handling, engine repair and other services to aviation
companies, also said Finance Director Mark Hoad would leave,
effective June 30.
Shares in the company fell as much as 5 percent on
Wednesday. The stock had gained more than 6 percent on Tuesday.
"The absence of a special dividend is probably disappointing
some people," Westhouse Securities analyst Kevin Fogarty said.
BBA Aviation had said last month it was "considering an
appropriate return of cash to shareholders" after selling its
landing gear business APPH to Canada-based Heroux-Devtek Inc
for $128 million.
Hoad's decision to step down after nine years with the
company may also have weighed on the stock, analysts said. He
has been finance director for the last four years.
BBA Aviation, whose customers include Rolls-Royce Holdings
Plc and Bombardier Inc, said it has started
looking for a successor to Hoad.
The company, which traces back its origins to a small
industrial belting work in Scotland in 1879, said underlying
pretax profit rose to $170.5 million in the year ended Dec. 31
from $157.8 million a year earlier.
Revenue increased 2 percent to $2.22 billion.
Analysts on average had expected a pretax profit of $171.36
million on revenue of $2.21 billion, according to Thomson
BBA Aviation shares were down nearly 2 percent at 346.7
pence at 1442 GMT on the London Stock Exchange. The stock fell
to a low of 336.1 pence earlier in the morning, and was among
the top percentage losers on the FTSE-250 Midcap Index.
(Reporting By Esha Vaish in Bangalore; Editing by Gopakumar
Warrier and Joyjeet Das)