Haeco earnings jump 6.7pc

PUBLISHED : Wednesday, 13 March, 2013, 12:00am
UPDATED : Wednesday, 13 March, 2013, 5:51am

Hong Kong Aircraft Engineering Co saw a 6.7 per cent jump in net profit to HK$876 million last year as rising demand for engine overhauls offset lower sales of the airframe repair division caused by labour shortages.

Haeco said the lack of skilled workers would continue to curb its airframe business in the first half but the pressure would ease in the second half.

Man-hours sold in the airframe section is expected to drop to 1.2 million in the first half from 1.6 million in the same period last year.

The company's overall sales grew 12.7 per cent year on year to HK$5.83 billion. Better-than-expected demand for engine repairs at Hong Kong Aero Engine Services and Singapore Aero engine services contributed to the rise in sales.

The airframe maintenance section, however, sold 1.3 per cent fewer man-hours last year.

The final dividend per share was HK$2, raising the payout for the year to HK$2.88 per share from HK$2.60 previously.

Earnings per share rose 6.7 per cent to HK$5.27.

Looking ahead, Haeco said maintenance services in Hong Kong were expected to remain stable, but airframe demand would be adversely affected because of labour shortages in the first half. Its airframe maintenance business in Xiamen was expected to improve slightly.

The early retirement of Boeing 747-400 freighters operated by Cathay Pacific Airways would hinder the demand for engine repairs in Hong Kong, it said.

Haeco shares rose yesterday 0.26 per cent to end at HK$115.80.