Profits fall 27% at aircraft group

RESTRUCTURING costs totalling $11 million (€7.7m) at the Irish-based Lufthansa-owned aircraft overhaul and leasing group last year resulted in pre-tax profits decreasing 27% to $17m, figures show.

However, revenues at the German-owned Lufthansa Technik Airmotive Holdings Ltd last year rose 13% from $327.2m to $369.7m in the 12 months to the end of December 2010.

The figures, just filed with the Companies Office, show that $10.5m of the $11m restructuring cost related to the redundancy payments last October. The group announced 107 workers at its aircraft overhaul Shannon Aerospace business in Shannon were being made redundant.

The group employs 1,284 between its Dublin and Shannon units and according to the directors’ report, there was a significant improvement in the aviation industry in 2010 and this was also experienced by the Lufthansa group in Ireland with the exception of the aircraft overhaul business.

The figures show that the group’s operating profit before the restructuring costs increased 13% from $32m to $36.4m. The operating profit was achieved after factoring in the non- cash cost items of $23.9m in depreciation and an $11.2m write down in value of aircraft related components.