Turbomecanica profit down 50%

Aircraft engine and mechanical subassemblies maker Turbomecanica Bucharest saw its profit shrink 50% in the first quarter this year.Net profit in the first three months amounted to merely 3bn ROL, albeit turnover gained 24% in nominal terms, reaching 166bn ROL ($5 million). Inflation in that period was of 17%. Turbomecanica had seen this coming since the beginning of the year, expecting the full-year profit to drop 17% and sales to follow suit and go down 8% in nominal terms. Its S&R budget targets 113bn ROL net profit and 690bn ROL total revenues for this year. The company also estimates to see $4-$5 million turnover for Turbomecanica Combuster Products, the joint venture it established together with General Electric Aircraft Engine, one of its main clients, last year. Turbomecanica also worked with IAR Ghimbav early this year, in order to build several IAR 330 Puma helicopters exported to the Ivory Coast. The company’s receivables had come to total 200bn ROL ($6 million) by the end of Q1, with debtors including the National Defence Ministry through IAR Brasov. Its debts were a little larger than the receivables: 221bn ROL. ZF