Leasing firm sees profits drop 36%

PRE-TAX profits at a Shannon-based aircraft engine leasing firm fell 36% to $32 million (€23.1m) last year.

In accounts filed to the Companies Office, US-owned Shannon Engine Support Ltd incurred the drop after revenues decreased by 17%, from $133.6m to $110.3m, in the 12 months to the end of December.

Established in 1988 and part-owned by US giant GE, Shannon Engine Support provides services to 140 airlines. It employs just 20.

According to the directors’ report, “in a difficult year for the industry, turnover was down by 17% on the previous year. However, the company generated a profit before tax of $32.2m, which represents a margin of 29% on its revenues.”

The company’s profits were boosted by an exceptional item of a profit of $6.6m made from the sale of fixed assets. This followed a profit of $14.6m on the sale of fixed assets recorded in 2009.

Shannon Engine Support accumulated profits of $459m by the end of December, helped by taking $37.6m in non-cash depreciation costs.