Turbomecanica's profit halves in Q1

Turbomecanica Bucuresti, manufacturer of aircraft engines, has posted an approximately 0.53 million-RON (0.15 million-euro) net profit in the first quarter of 2007, down to less than half of the profit made in the same period last year. The company’s business also saw a slight decline, by around 4%, to 17.6 million RON (5.3 million euros). The company budgeted total revenues worth 98.1 million RON (28.8 million euros) for this year, an approximately 10% decrease on last year, according to data provided by the company. However, the company estimates its net profit will see a slight rise in 2007, of 4.5%, totalling 16.7 million RON (4.9 million euros). Under the circumstances, the net profit margin is expected to climb 17%, on last year, of 14.5%. The company has planned investments worth 16.8 million RON (around 5 million euros) for this year, an almost three-fold increase against 2006. Investments will predominantly be used for acquiring new equipment, worth 12.7 million RON (3.7 million euros), which is necessary for the production process. Smaller investments are earmarked for construction, modernisation and other equipment.