Aerostar sees shrinking turnover

Despite the 8m-euro contract it signed with the National Defence Ministry, aircraft maker Aerostar Bacau has budgeted turnover standing at 28 million euros for this year, slightly lower than last year”s level. Aerostar Bacau landed a three-year contract with the Defence Ministry, with the value for this year amounting to 28.7 million RON (more than 8 million euros). Under this contract, Aerostar will secure the maintenance of MIG 21 and L-39 military aircraft owned by the Air Forces part of the National Defence Ministry. According to Aerostar, the exact value of the contracts for 2007 and 2008 has not been decided yet, but it is put at approximately 30 million RON. Aerostar also has contract worth 6.6 million dollars (5.5m euros) this year, related to aircraft engine repair works. The company signed the contract in November 2005, with a foreign customer. Aerostar has budgeted turnover worth 98m RON (28m euros, at a 3.5 RON/euro exchange rate) for 2006, lower compared with 2005, when the company”s turnover topped 102.7m RON (28.4m euros). The company also projects net income worth 5.86m RON (1.68m euros) for this year, down 11% from last year. ZF