M. Riman: Changes in Aero represent good news for whole Czech aviation industry

08/11/2007 | “I am satisfied with the preliminary economic results of the Company. The new owner, group Penta, managed to stabilize and strengthen AERO in a short time, at the same time launching an investment program, further expanding its production potential,” said Martin Riman.

“I am satisfied with the preliminary economic results of the Company. The new owner, group Penta, managed to stabilize and strengthen AERO in a short time, at the same time launching an investment program, further expanding its production potential,” said Martin Riman, Minister of Industry and Trade of the Czech Republic after his visit in AERO Vodochody a.s. on November 8, 2007.

“The achieved results in AERO represent good news for the whole Czech aviation industry and I believe that they will significantly contribute to further development of this sector. It is also a good example of a private owner managing a company more effectively than the State,” added Minister Riman.

“According to preliminary results, we have managed to increase the revenue by 40% in 2007, exceeding CZK 4 billion (ca USD 215 million). We should reach net profit of at least CZK 200 million (ca USD 10.75 million) and expect CZK 500 million (ca USD 26.9 million) next year. At the same time, we are going to invest CZK 600 million (ca USD 32.25 million) into modernization of machinery and expansion of the production base,” said Peter Ondro, President of AERO.

Minister Riman was also interested in continuation and preparation of new development projects, which could make the expansion of the production portfolio of AERO even faster. “This sphere belongs to our priorities. We want to focus on sophisticated production with high value added and the aviation industry is a typical sector with high share of development works. That is why these projects have our support,” said Minister Riman.

Private equity group Penta obtained 100% of the shares of AERO Vodochody a.s. on January 4, 2007 and immediately launched a project of changes with the aim to strengthen the loss-making Company as soon as possible. The original plan was to reach balanced economy in this year’s fourth quarter and start showing profit from 2008. “The project of changes was significantly supported by all employees of the Company. That is why we managed to reach even better results than we have expected,” explained President Ondro.