Hampson hit by defence cuts

International aerospace group Hampson Industries is unwanted after providing a disappointing update on second-half trading at its Texstars and Odyssey divisions.Hampson's aircraft and vehicle transparencies business Texstars has been hit by potential cut-backs in US defence procurement budgets, while its Michigan-based tooling division Odyssey has been affected by a number of "significant operational challenges", the group says. While further restructuring and improvement initiatives are in progress, the results of these will not be realised until next year.Meanwhile, its California-based tooling operation Coast Composites is said to be performing well and the Shims businesses are expected to benefit from increased production rates at clients Airbus and Boeing.However, the board considers it "appropriate to remain cautious about the group's expectations for the 2010/11 financial year." Since the half year (30 September), net debt has increased by £10m to £99m.