Irkut subsidiaries boost earnings
results Russian aircraft manufacturer Irkut has posted a year-on-year increase in net profit for 2005 of 24.1% to $84.8 million, according to international financial reporting standards. Earnings rose 14.5% to $712 million, principally because of increased output at the company’s subsidiaries.
Diehl buys back BGT Defence shares consolidation German defence manufacturer Diehl is regaining full control of Diehl BGT Defence because it believes “the process of national consolidation of missile capacities is currently not progressing”. EADS previously held the 13.3% stake in Diehl BGT Defence, but Diehl will revert to 100% ownership following the purchase. Diehl says it “remains interested in consolidation in Germany and will continue its respective efforts”.
GECAT wins approval for training in China
training GE Commercial Aviation Training (GECAT) is boosting its presence in the growing Chinese commercial aviation training market, having won approval from the CAAC (Civil Aviation Administration of China) to conduct Airbus initial and conversion training. The approval will allow GECAT to conduct training on the A320 and A330/340 simulators at its Hong Kong training centre, with the first training courses for several Chinese Airlines set to begin soon. The move will allow GECAT to “respond to the growing training needs of Chinese airlines who are operating or acquiring Airbus equipment”, says chief operating officer Brian Simpson.
Italy’s Avio in high-tech repair venture
repair Italian aerospace manufacturer Avio is setting up a new repair company for turbomachinery components. Avio holds a 60% stake in Aviofix, with heavy-duty gas turbine specialists ATLA and TAG accounting for the remainder. The company, based in Cremella, northern Italy, will specialise in repairing airfoils designed and manufactured by Avio. Avio says the company will “create a centre of excellence for aeroengine component repairs in a market that is estimated to be worth approximately $3 billion and which is currently growing at 6% per annum”. It is due to begin operating at the end of the year.
L-3 to acquire airframe specialist Crestview
acquisition L-3 Communications is to acquire aircraft structure and modification specialist Crestview Aerospace (CAC). The deal is expected to close in the third quarter of 2006 and to be “slightly accretive” to L-3’s earnings for the year. L-3 already partners with CAC on C-130 aircraft and H-60 and H-53 helicopter work. “CAC gives L-3 turnkey manufacturing and modification capabilities that are within 80 miles of seven military bases,” says L-3 chairman and chief executive Frank Lanza.
Finmeccanica targets defence electronics
expansion Italy’s Finmeccanica is earmarking up to g2 billion to spend on further defence electronics acquisitions, according to Italian daily financial newspaper Il Sole 24 Ore. Finmeccanica, which posted a net profit of g396 million in 2005, is increasingly focusing on overseas markets, according to chairman and chief executive Pier Francesco Guarguaglini. The group posted a rise in earnings before interest and tax from g465 million in 2004 to g735 million in 2005. Net profit was lower year-on-year because of the impact of share sales and non-recurring write-downs in 2004, Finmeccanica says.
Source: Flight International
