News
Aircraft leasing group sees profits double despite a ‘very difficult year’
Monday 10th September 2012
By Gordon Deegan www.irishexaminer.com
Pre-tax profits at the Irish-based, Lufthansa-owned aircraft overhaul and leasing group last year more than doubled to .1m (€27.3m) "despite a very difficult year for the aviation industry".
That is according to accounts lodged by Lufthansa Technik Airmotive Ireland Holdings Ltd with the Companies Office that confirm revenues increased by 0.8%, or .1m, to 2.8m in the 12 months to the end of December last.
The group’s companies are engaged in the rebuilding of aircraft engines; leasing of engines and rotable aircraft-related components; engine component repair; and aircraft maintenance.
According to the directors’ report, "all business segments in the group contributed positively to the result for the year".
The group employs 1,205 between its Dublin and Shannon units, with sales to German airline Lufthansa accounting for 65% of turnover.
The group incurred m in restructuring charges in 2010 and the directors state that excluding this exceptional charge, pre-tax profits last year increased by 24.3% on 2010.
The figures show that the group’s operating profit last year increased by 66%, from .4m to .2m. However, interest payments totalling .7m, along with finance charges of 9,000, reduced profit to m.
At the end of December last, the group had 9.1m in accumulated profits. Its shareholder funds totalled 2.2m.
The operating profit was achieved after factoring in the non-cash costs of .4m in depreciation and an .4m writedown in the value of aircraft-related components. The group made an actuarial loss of .5m on its pension scheme last year compared to a .2m gain in 2010.
The directors state that the group’s "Engine Overhaul Segment experienced an overtime ban in the second quarter of 2011, which impacted on production and costs, but despite this setback, the company achieved its profit target for the year".
They add that the "aircraft overhaul segment returned to profit in 2011 following a major restructuring programme in 2010".
"The engine component repair segment experienced another good year in 2011. Intake was strong across all product lines and the capacity of some product lines had to be increased to deal with the volumes.
"The engine and aircraft component leasing segment continued to grow in 2011 and, as in 2010, contributed to the bulk of the group’s profit for the year.
"The company’s capital investment in engines and aircraft-related components during 2011, amounted to .1m."
The figures show that the group’s staff costs last year totalled m compared to 2m in 2010.
The group’s cost of sales increased marginally from 6.3m to 7.7m, while the company’s operating expenses decreased from m to .8m.