Aerostar sees profits and dividends go up

Aircraft builder Aerostar Bacau made 1.88 million-euro (6.8 million RON) net profit last year, an increase of 23.7% on 2004. The company intends to distribute 75.8% of the profit as dividends, that is more than it disbursed last year, when it allocated 66.7% of its net profit for dividends. Aerostar wants to disburse a gross dividend of 0.44 RON/share, up 25.7% compared with last year. The dividend accounts for 9% of the price at which the company”s shares are trading on the Bucharest Stock Exchange, that is more than the interest yielded by a one-year banking deposit.

Aerostar”s profit is higher than initially estimated by the management, which had anticipated 2005 net income to stand at 5.5 million RON. The company made 28.38 million-euro (102.7 million RON) turnover last year, up 9.9%

in euros, but slightly down in RON. The company officials were not available for additional comment yesterday. The management had set out, as highlighted in the spending and revenue budget, to attain 5.87 million RON profit and 98 million RON turnover by the end of last year. Aerostar builds and repairs aircraft and aircraft subassemblies, as well as containers for liquefied petroleum gas. It performs repairs and maintenance works on all types of aircraft used by the Romanian Military. Aerostar is controlled by Iarom Bucharest, which owns more than 71% in the company. ZF