This article is from page 18 of the 2008-08-19 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 18 JPG
SUSU See r-Wcclmmcchlbul hmm OKOecmmselomm belie Lufthansa group of companies show they have recovered from an indus- trial dispute at Shannon Aerospace to record a 57 per cent increase in pre-tax profits last year.
Profits for the Irish operation rose from $11 million in 2006 to $24 million last year while turnover in- creased by 38 per cent from $242 million to $335 million.
According to a statement accom-
panying the accounts, the airline in- dustry experienced a buoyant year in 2007, which saw the profits in most of the group’s segments increase.
“Industrial relation problems, which marred the results of Shannon Aerospace Ltd in 2006 were resolved in the second quarter of 2007 and the company operated profitably for the remainder of the year.
‘The group continued to experience strong competitive cost conditions in 2007, but there were significant con- tracts won in both the aircraft and
engine related business segments in 2007.
“The aircraft industry tends to be cyclical in nature and the board con- siders this to be the principal risk to the group’s operations and its cus- tomer base. The directors consider that quality of service to customers, turnaround times, cost control and production volume as key perform- AW Nom OSE RUD Rohe
No dividend was proposed or paid by the directors during 2007.
The statement added, “The empha-
sis of the group is to keep the compa- ny focused of the changing require- ments of an increasingly competitive market and of its customers.”
Previous accounts show that the in- dustrial dispute at Shannon cost the group $9 million.
Cost of sales increased from $201 million in 2006 to $272 million in 2007 and operating profit increased from $10 million to $28 million.
The company is in a healthy state with accumulated profits going up from $85 million to $116 million.
Fixed assets account for $383 mil- lion, while shareholders’ equity 1s valued at $249 million.
Underlining the importance of the company’s operations to the local economy, the accounts show that it employs 1,245 people — down slight- ly on the 1,258 it employed in 2006.
921 are employed in production, 308 in administration and 16 in Phe
The group’s payroll costs for 2007 were $88 million — up $10 million on the costs in 2006.