Haeco profit creeps up by mere 0.4pc
Former blue chip Hong Kong Aircraft Engineering Co (Haeco) yesterday disappointed the market with a slender 0.4 per cent rise to $179.6 million in attributable profit for the six months to June 30.
The consensus among analysts - according to The Estimate Directory - had been for profit to climb more than 10 per cent.
The directors also warned that attributable profit for the full year, excluding exceptional items, would only be in line with last year's.
Haeco, which maintains and overhauls commercial aircraft, said improvements in productivity had been offset by 'the continuing adverse impact of Hong Kong inflation'.
The directors said revenues and operating profit were lower due to the transfer of the company's engine overhaul business to 50 per cent-owned associate Hong Kong Aero Engine Services in January.
Operating profit dropped 21.2 per cent to $136.3 million, while turnover fell 9.9 per cent to $1.07 billion.
The number of aircraft movements handled by the company at Kai Tak increased by 6.2 per cent compared with the first half of 1996, which helped increase line maintenance revenues.
Contributions from associated companies also rose with an improved contribution from Taikoo (Xiamen) Aircraft Engineering Co, an associate which operates aircraft maintenance facilities at Xiamen in China.
