Profits drop at aircraft leasing firm
New figures show that the Shannon-based GE Capital Aviation Funding recorded the profit decline after revenues went down by 4% — from $836.9m to $800.3m — in the 12 months to the end of December last.
The returns show that the tax on the profits was $257,000 — an effective rate of less than 1%.
The newly filed accounts for 2013 also state that the firm would have been liable for a tax bill of $108.3m based on the Irish corporate tax rate of 12.5%.
However, the firm availed of group relief — totalling $95.39m — and non-taxable items totalling $13.375m, contributing to a tax charge of $260,000.
The tax charge for the year was calculated at $257,000 as a result of an over-provision of tax of $3,000 in 2012.
The pre-tax profit for the US-owned subsidiary of General Electric makes the company one of the most profitable public and private limited companies in the country.
Earlier this year, it was confirmed that a Shannon subsidiary, GE Capital Aviation Services Ltd has placed an order for 40 new Boeing 737s with a list price of nearly $4bn.
The figures for GE Capital Aviation Funding show that the firm’’ operating profits decreased by 4%, to $791.1m last year.
The filings show that the firm’s income was boosted by a $100m dividend received from subsidiary, GE Capital Aviation Services Ltd.
Total dividend income for GE Capital Aviation Funding amounted to $109.4m. However, this was offset by interest payable of $26m and an impairment loss of $8m.
All of the firm’s revenues were generated in Ireland and, according to the directors’ report, “both the level of business and year-end financial position were satisfactory and the directors expect that the present level of activity will be sustained for the foreseeable future”.
The principal activity of the company is the provision of financing and lending to other related group companies in the aviation industry.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
