Checks Indicate Chinese Aftermarket Demand Holding Up, Freight still Struggling
A report by Wedbush Equity Research Posted by- Neelam Mathews March 26, 2012 Checks Indicate Chinese Aftermarket Demand Holding Up, Freight still Struggling • In light of increased concern with the 2012 growth outlook in China, we conducted a number of specific checks to determine the impact on the demand for commercial aerospace aftermarket parts and services. So far, the macro issues in China have not had a negative impact on 1Q 12 aftermarket parts demand. It is true that the Chinese market for aftermarket parts demand will see slower growth in 2012 (~10%-12% as compared to ~20% in 2011), but recent issues have not yet changed the outlook for firms relative to expectations at the end of 2011. Remember China accounts for an estimated 8% of all commercial aftermarket parts shipments. • Any slowdown in aftermarket activity will be initially felt in engine and airframe markets. We have heard that engine is currently somewhat softer now than it was last year (in line with expect...