Confirmed: Aero Vodochody creates profit again

25/07/2008 | Audited financial results of Aero Vodochody, the largest aviation producer in the Czech Republic, confirmed improvement in its economy compared to 2006 by CZK 1.2 billion.

Audited financial results of Aero Vodochody, the largest aviation producer in the Czech Republic, confirmed improvement in its economy compared to 2006 by CZK 1.2 billion. Aero created profit for 2007 in the amount of CZK 236 million (compared to the loss of 2006 in the amount of CZK 964.3 million). Revenue of the Company reached CZK 4.3 billion in 2007, which represents an increase compared to 2006 by 47%.

“Year 2007 represented a true turning point for Aero Vodochody. The capital entrance of a strong shareholder, private equity group Penta, proved soon. Compared to the set goal to show profit from January 2008, Aero already in August 2007 started creating profit. The restructuring process was successfully completed,” says Peter Ondro, President of Aero.

“We have set ambitious goals also for the year 2008. Aero is becoming a strong player on the aerostructures market, we seek to achieve significant orders as first-tier supplier. We continue in benefiting from our know-how and aspire to join international production as well as development projects. We also continue in activities leading to sales of the L-159 Combat & Training System,” says President Ondro, adding that “Profit is planned also for the year 2008 in the amount of CZK 400 million.”

2008:  Aerostructures, investments, new employment opportunities
In 2007, Aero launched large investment projects, mainly into reconstruction and modernization of machinery and technologies. In 2007, more than CZK 100 million was invested. Acquisition of Rotorech Composites Ltd., which extended the portfolio of advanced technologies by composites production, represented an important milestone of the year 2007. Aero at the same time launched a project of an in-house composite plant. “Investments into production and technologies for 2008 should reach up to CZK 150 million. Till 2012, we plan to invest almost CZK 1.5 billion,” says President of Aero Peter Ondro.

In the context of new orders in aerostructures and investment projects into new technologies, Aero plans to create a total of 700 new work places by 2012. “It will not be easy to find enough qualified employees. Although we offer work especially to people in the vicinity of Aero, we know that we will have to search workforce also from more distant places. We already experience lack of workforce in production and technological positions,” adds Ondro.

2007: Summary
Private equity group Penta right after its capital entrance into Aero in January 2007 launched a restructuring project with the aim to stabilize and further strengthen Aero as a traditional producer of advanced aviation technologies and defined for Aero following priorities: further development of aviation production, support of the Czech Air Force and airport development.

In 2007, Aero continued in military as well as civil production. By 30% more Sikorsky S-76C helicopters were delivered to Sikorsky Aircraft Corporation compared to 2006, Aero launched production of the C-27J Spartan for Alenia Aeronautica and signed a new important contract in aerostructures on deliveries of Embraer 170/190 subassemblies for French Latecoere.

On the basis of the general agreement with the Ministry of Defence of the Czech Republic, valid till 2029, Aero continued in support of the Czech Air Force L-159 fleet. Advanced training L-159 aircraft were delivered, which crowned equipping of the Czech Air Force with the L-159 Combat & Training System. Aero also continued in complex logistic support and services for L-39/L-59 customers, e.g. finalized complete overhauls of the Tunisian L-59T fleet.