Turbomecanica Bucharest, the only manufacturer of jet and turbojet engines in Eastern Europe has budgeted a net profit of 18 million RON (5.14 million euros) for this year, up 5% compared with the profit in 2005.
The company, which works for the Rolls Royce and General Electric aircraft engine manufacturers, posted 17.7 million RON (4.88 million euros) net profit last year, about 20% higher than in 2004. The profit was negatively influenced by the increase in the utility rates, which was especially true for the electrical power, and by the appreciation of the exchange rate of the domestic currency, given that a significant portion of its revenues is derived from exports.
Turbomecanica set its revenue goal in the budget at 99.3 million RON (28.4 million euros) compared with 111 million RON (30.7 million euros) in 2005. Total spending should amount to 81.3 million RON (23.2 million euros).
The company did not say what its turnover expectations were, though. Turnover last year stood at 104.8m RON (28.9 million euros), an increase of about 19.5% from the previous year. Turbomecanica has scheduled 6.48 million RON (1.84 million euros) investments for 2006.
The company signed a five-year contract with British aircraft engine manufacturer Rolls Royce, to make and deliver parts and subassemblies needed in the manufacturing of aircraft engines. The contract is worth several million euros. The company officials could not be reached for additional information. Turbomecanica”s main client is US General Electric group, with which it established a joint venture in 2001. A large part of the aircraft engine subassembly production, worth several million euros a year is being bought by GE Aircraft, the aeronautics division of the American giant. The company is controlled by the employee association, Turboact, which owns 60.7%.
Turbomecanica in figures
* Expects net profit to be 5% higher this year
* Net profit in 2005 stood at 17.7m RON (4.88m euros), up 20% on 2004
* Projects total revenues of 99.3m RON (28.4m euros), while spending should amount to 81.3m RON (23.2m euros).
* Earmarked 6.48m RON (1.84m euros) for investments this year
andrei.chirileasa@zf.ro