HAECO profits fall in 1H2010

Hong Kong Aircraft Engineering Company (HAECO) revenue down 5.2% - financial highlights for the six months ended 30-Jun-2010:

• Revenue*: USD264.0 million, -5.2% year-on-year;
• Operating costs: USD238.2 million, -0.5%;
• Operating profit: USD25.6 million, -37.0%;
• Net profit: USD43.5 million, -21.4%;
• Net operating cash flow: (USD4.3 million), compared with a positive cash flow of USD45.2 million in p-c-p;
• Net cash and cash equivalents: USD89.2 million, -17.3%. [more]

*Based on the conversion rate at USD1 = HKD7.76156

HAECO: "Demand for HAECO's services in Hong Kong is expected to remain firm in the second half as long as the current aviation market recovery continues. However, TAECO's business in Xiamen is likely to continue to be weak, with substantial unsold capacity. Start-up losses at the new joint ventures in mainland China are expected to continue in the second half while HAESL's results are expected to be satisfactory. Overall 2010 will be, as expected, a challenging year," Christopher Pratt, Chairman. Source: HAECO, 03-Aug-2010.