Honeywell Forecast Hedges Market Bottom

 - February 23, 2009, 4:49 AM

Honeywell’s annual market forecast for civil turbine-powered helicopters released yesterday predicts flat to slightly higher deliveries in the next five years compared with the previous five-year period, but there are caveats aplenty. The forecast calls for delivery levels this year to remain near 2008 levels before declining next year. The sharpness of the drop and how long it lasts is largely unknown, forecasters noted, “due to the uncertainty of the global economy.” The trough could last until 2012 and perhaps longer, they said. Measured customer purchase expectations for the period are down 21 percent worldwide. Medium- and intermediate-twin helicopters posted the biggest anticipated drop, down 43 and 49 percent. Only expectations for turbine singles and light twins rose, but a good portion of this demand appears to be triggered by fleet attrition and operators who say they will trade down to smaller helicopters.