Irish Lufthansa Technik arm posts $43.7m profit from continuing business
Published 20/09/2016 | 02:30
Profits at Shannon-based aircraft maintenance firm Lufthansa Technik Airmotive plunged by over 50pc last year to $35.6m - a year after it closed its Dublin-based facility with the loss of hundreds of jobs.
But the group's remaining business in Ireland performed strongly during 2015, posting a $43.7m operating profit, which was 49pc higher than the previous year.
The company shut its engine maintenance business here in 2014, but has three other units, including an aircraft overhaul division in Shannon.
The company's operations also include aircraft engine leasing and component repair.
The latest set of accounts for the business show that turnover from continuing activities rose 6.3pc in 2015 to $196.1m.
The directors of the company noted that the figure included the negative impact of exchange rate differences.
They said the increase in profit from continuing operations was primarily a result of a reduced impairment loss on tangible fixed assets.
The group's engine component repair business saw its turnover decline 1.9pc last year. That comprised a 5pc fall in revenue from repair services, which was partly compensated for by an increase in revenue from engine technical support services.
"The company continues to focus on newer engine repairs, but as yet the growth in these repairs is not compensating fully for the decline in the mature engine repairs," the directors note.
The company launched a voluntary redundancy scheme at the end of 2015, and made a $1m provision for staff exits under that programme.
The group's aircraft overhaul unit saw its revenue rise 7.1pc. A change in product mix towards heavier maintenance was the main driver of the increase, while revenue from the freighter market also boosted the figure.
"Management continued to focus on reducing the cost base of the company to allow it to compete for maintenance contracts with competitors from lower-cost regions, and thereby managed to keep the operating costs consistent with 2014, despite its growth in turnover," the accounts note.
Revenue at its engine and aircraft component leasing division rose 8.6pc, and its operating profit climbed 9.7pc before $3.2m in asset impairment losses.
Lufthansa Airmotive Technik closed its engine overhaul business in Dublin in 2014 with the loss of over 400 jobs.
The company said that it recognises the "continued importance" of improving efficiency and reducing its cost base.