HAECO’s 2016 net profit more than doubles on sale of Singapore aircraft engineering unit

Hong Kong Aircraft Engineering Company (HAECO) posted a 110 per cent rise in net profit in 2016, thanks primarily to a HK$805 million (US$103.7 million) gain from the sale of its interest in a Singaporean aircraft engineering company in June.

The aircraft engineering and maintenance group, just under three-quarters of which is owned by conglomerate Swire Pacific, posted net profit of HK$975 million for 2016 compared to HK$464 million in the previous year.

Nonetheless John Slosar, HAECO chairman, warned of an uncertain outlook for 2017.

HAECO has operations in Hong Kong, Xiamen, and in the Americas. Swire had cited higher losses at HAECO Americas in a profit warning it issued in November.

HAECO Americas posted a loss of HK$238 million for 2016, excluding one-off items, a sizeable increase on 2015’s HK$158 million loss.

HAECO Hong Kong, HAECO Xiamen, and TEXL – the company’s Xiamen based engine overhaul facility, all reported net profits.