Aerospace and defence company Aerostar Bacau intends to make the same profit next year as it estimates to log in 2003, 63.13bn ROL, as highlighted in its S&R Budget. Next year’s projected inflation, 9-10%, will lead to a drop in profit in real terms. The 2004 turnover is supposed to go up by only 3% in nominal terms and reach 847bn ROL.
Aerostar has run a series of modernisation programmes for the Soviet-made aircraft used by the Romanian Military in the last few years. The contract was concluded in 1993 and the last plane thus upgraded was delivered this spring. The military aircraft upgrade will continue at Aerostar, as the company signed an $8 million deal to modernise 12 MIG-21s used by the Croatian Military. The contract could be extended to another 12 aircraft, in case the Croatian Defence Ministry is pleased with the service quality.
Aerostar specialises in repairing and upgrading military aircraft, making and repairing hydraulic aviation equipment, light aircraft and land military equipment.
Another sector to have contributed to the development of Aerostar’s business in the last few years is the ultralight aircraft. “As far as ultralight planes are concerned, we expect to sell at least five such aircraft in Romania next year and have also got orders to export to Canada and the United States,” Tudorel Turtoi, Aerostar’s marketing manager said. Ultralight aircraft are generally used for pilot training and leisure.
Another co-operation Aerostar commenced this year is that with Dutch aircraft maker Stork Fokker. The two established a joint venture the share capital of which is supposed to go up to 1 million euros. The new company will operate a state-of-the-art technological line for processing mechanical aircraft parts. Aerostar and the Dutch company also signed a deal enabling the Romanian party to become a component supplier for Fokker planes.
Nine months through this year, Aerostar made 33bn ROL profit, four times higher than in the same time last year, while sales rose 80%. The turnover in the first three quarters amounted to 690bn ROL. ($20.5 million).
Aerostar and its main shareholder Iarom Bucharest this July took over 88.4% in special equipment producer Elprof Bucharest from the Economy and Trade Ministry. The deal was worth 56bn ROL (approximately $1.7 million), which includes the price of the stake, the technological investment programme, the environmental investment programme and the debts undertaken. Iarom Bucharest owns 71% in Aerostar, followed by SIF Moldova, 11%. Aerostar’s share capital amounts to 292.8bn ROL. Elprof produces radio-TV emitters and receivers, telephone and telegraph equipment, recording and playback equipment, audio and video equipment for the defence sector. The company holds a licence for the Panther radios, based on a licensing deal closed with British Thales Communications, a division of France-based Thales Group.
vlad.nicolaescu@zf.ro