Turbomecanica no longer disburses dividends

Aircraft engine component manufacturer Turbomecanica posted profit worth 7.6 million RON (2.3 million euros) in 2007, the lowest level in seven years. The management of Turbomecanica (TBM) has decided to not disburse dividends to shareholders from the profit made in 2007, and instead will use the profit as a source of capital, after last year’s income was less than half the level posted in the previous year. Turbomecanica has managed to keep its dividend policy unchanged over the years, having disbursed dividends to shareholders every year since it was first floated on the Stock Exchange. Turbomecanica and BRD were included alongside 13 other companies in Eastern Europe in the Dow Jones STOXX EU Enlarged Select Dividend 15 early in 2006. One of the conditions for inclusion in this index is that issuers must have granted higher and higher dividends over the past three years. Turbomecanica posted net profit worth 7.6 million RON (2.3 million euros) last year, less than half of profit derived in 2006- 16.5 million RON (4.7 million euros), as well as the targeted profit set by the company.